Charles Spinelli On What Start-Ups Should Know About Workers’ Compensation

Launching a startup often feels working in different positions at the same time. You may have to plan of product development, fundraising, hiring, and brand building all by yourself. In this situation, it is easy for founders to overlook Workers’ Compensation because it often seems like a mundane requirement. Until someone gets hurt on job or falls ill, business owners usually don’t pay attention to Workers’ Compensation, as per Charles Spinelli.

Workers’ Compensation Is For All Says Charles Spinelli

Often business owners view it as a concern for large corporations or industrial jobs. However, workers’ comp is just as relevant to a small tech team as it is to a manufacturing plant. Ignoring it can expose your business to legal troubles including hefty fines, or even litigation. This is why, Charles speaks about educating yourself and learning about Workers’ Compensation.

What Is Workers’ Compensation?

These benefits may include medical care, wage replacement, disability coverage, and recovery support. This insurance reduces the power to sue a company.

Why It Matters to Startups

Startups often operate in a high-pressure and fast-moving environment. Here multitasking is normal because you need to play multiple roles at the beginning. But skipping or delaying workers’ compensation is not a risk worth taking.

It Is Legal – If you even have a single full-time employee, you need workers’ compensation according to the requirement of some state laws. In some states that requirement goes up to part-time workers or contractors, depending on how they work.

Fines & Penalties – If you are caught without proper coverage, your startup could face fines, lawsuits, or even litigation. Law takes this seriously. You cannot feign ignorance and get away with not having workers’ compensation.

Accidents Happen Everywhere – Workplace accidents are restricted to construction sites only. Even in the safest space an employee can fall and break a bone. Due to work pressure or work stress, an employee can suffer from health issues. Therefore, even if you are operating a five person IT company, you still need workers’ compensation.

When Should a Startup Get Coverage?

The best time to get workers’ compensation is before you hire anyone. You should not wait for the first injury to get workers’ compensation. Research the requirements, talk to an expert if possible, and include this coverage to your operational plan.

You may need to speak to expert to help you sort this thing out.

Choosing the Right Coverage

Workers’ compensation policies are widely available. However, that does not make selecting the right coverage any easier. The coverage you need will depend on some factors –

• Industry risk – The tech startups usually have lower risk exposure compared to the construction startups. So, tech startups may have low cost coverages.
• Employee count – Your coverage depends on the number of employees you have.

Startups should work with experts who understand coverage according to Charles Spinelli. This can help them get personalized coverage that grows with the business.