That all depends on how many employees you have and how you define the word “Need”.  Virginia law only requires employers who have three or more employees to carry Workers Compensation insurance.  However, just because the law doesn’t require you to carry the coverage doesn’t mean that you don’t have an exposure.  If you are a small employer and one of your employees gets hurt on the job you are still responsible for their lost wages and their medical bills.  The only difference is if you don’t have Workers Compensation insurance you will have to pay those bills out of your current income which could easily bankrupt many small businesses.  Also, the ultimate responsibility could still fall to the business owners personal assets.  “S” corporations and Limited Liability Corporations will not always protect business owners from liability claims, especially when there is an injured employee involved. 

Don’t trust government agencies to make insurance decisions for your business.  Use common sense and do what is reasonable and prudent given the circumstances.  It is better to have coverage and not file claims than it is to not have coverage and need it.  That is the one thing about insurance:  You have to buy it before you suffer a loss.  So, don’t risk your business and possibly your personal assets unnecessarily.  If you have employees you should have Workers Compensation.

Technology has given us many opportunities and access to many resources.  However, there are limits to what you want to attempt on the internet.  For example, if you were really sick, you would not seek treatment from a computer based process on the internet.  Even though you might be able to gain some insight to what illness you have, you would probably want a real doctor to to evaluate potentially serious problems.  You probably would not want to find answers to a serious legal problem and you certainly would not expect an internet based lawyer to defend you in court.  You would want to talk to a real lawyer.  The same goes for insurance.  You may be able to get some ideas about rates or even some general information about coverage, but do you trust your knowledge of the subject enough to gamble your family’s financial security by purchasing coverage on the internet?

Many insurance companies want consumers to believe that insurance is a one size fits all commodity, but the reality is everyone has different needs and different exposures.  Insurance contracts are very complex and convincing people that it is so simple that a “Caveman can do it”,  is disingenuous and dangerous to consumers.  I have spoken to many people who have left those one size fits all companies with horror stories about losses that were not covered.  The story is always the same:  The client purchased coverage on line or from a toll free number and received a great price.  However, the client did not know that they were sold a policy that did not have adequate limits or did not have the appropriate endorsements.  To a person, each one of them told me that they would have been happy to have paid a few dollars more to get a policy that actually covered their claims.

The latest trend is the “Pick Your Payment” sales tactic.  The reality is, when you pick your payment, you are actually picking your coverage.  Anyone can sell a cheap policy.  You won’t get much coverage, but it will be cheap.  I think that selling  insurance this way is a disservice to clients and it is misleading to most consumers.

There is a reason why most people prefer to do business with a professional agent.  Clients like to have these contracts explained to them and they like to know what their choices are when they are purchasing a policy.  No one wants to find out what their policy covers after they have suffered a loss.  Plus, if you do have a loss and you need help with a claim, would prefer to call an 800 number, go on line or talk to a professional agent who know you and your family.  By the way, that agent as a vested interest in maintaining a strong relationship with you.  Who do you think is going to help you the most? 

Remember, just because something is cheap does not mean it is better.  Chances are you don’t buy the cheapest car or go to the cheapest restaurant.  You probably don’t ask your doctor about his fees when you need help or question your lawyers fees when you are in trouble.  Price should be a factor, but in the end you need to feel good about the people you do business with.  When navigating the insurance industry you will benefit by having a real, professional, human agent available to answer your questions and to help you during your time of need.  Agents offer something that you will never find on the internet:  Compassion.  What is the value of compassion to you when you have suffered a loss?  How do you quantify the human element?  What is the value of peace of mind?

Many homeowners use the warm months of the year to work on home improvement projects. Some projects are just a little too big for the average homeowner so we call upon local professionals to help us out.   Most homeowners don’t realize that they need to ask their contractors for proof of insurance before allowing work to begin.  You can ask your contractor to provide you with a Certificate of Insurance which lists you as a certificate holder.  You want to see that the contractor carries General Liability insurance and Workers Compensation coverage.  If the contractor is not insured, any damage he causes to your property, property of others or any injuries which occur could be your responsibility.

Recently, a friend hired a contractor to do some minor repairs in her home.  The contractor was a friend of a friend and came highly recommended.  While performing a repair her dog became excited and ran through the house knocking the contractor down which resulted him cutting his hand.  He required 22 stitches at the local emergency room.  He did not have workers compensation insurance or health insurance so my friend paid for his treatment out of pocket.  I recommended that she contact her homeowners insurance company because if the contractor is unable to work because of the injury she may find herself being served with a law suit claiming damages for lost wages.

Fortunately, this was a relatively minor loss, but it does illustrate how easily a simple temporary business relationship can turn into an unexpected financial burden.  Often, contractors will operate without insurance in order to keep their costs down.  Many times, these same contractors will attempt work that they are not qualified to perform.  The homeowner may think they are getting a great deal on the work but the reality is they may be saving money up front only to be faced with headaches down the road.   

When hiring a contractor make sure that the person you hire has the appropriate qualifications or licenses to perform the work.  Make sure that they have insurance for liability and workers compensation.  Receiving a recommendation from a friend or neighbor should not be the determining factor when you hire someone to work on your property.  To ensure that you are hiring a reputable contractor ask to see their license and insurance information.  Don’t worry, you won’t offend a  good contractor.   The ones who do get upset probably are the ones you really don’t want to have working for you anyway.

With more than 50 million uninsured Americans including more than 10 million uninsured kids, it is more important than ever to make sure your youth teams and camps provide medical coverage for the kids.  Soccer teams, youth day camps and other organizations that provide young people with a constructive and positive environment for developing socially as well as athletically should provide kids with emergency medical coverage.  The cost for the coverage is cheap, but the benefits can be enormous for a family that is uninsured.  If little Susie or Johnny breaks an ankle on the soccer field, the emergency room expense alone could be several thousand dollars.  Group accidental medical coverage can pick up those expenses and save that family from unexpected and perhaps unaffordable debt. 

Group accidental medical coverage is also available for adult teams, organizations and even volunteer fire fighters and auxiliary police officers.  Getting involved in your community should not mean taking on extra financial risks just because your hurt while volunteering.  Make sure your organization or athletic team has coverage for participants.  For more information you can check out our specialty products page, give us a call or fill out our contact form.