With worker’s compensation premiums consuming a rising portion of their income, many businesses are tempted to buy cheaper “alternatives”. However, there is no alternative to worker’s compensation.

A business that does not have worker’s compensation, or “goes bare”, faces unlimited liability. If an injured employee can prove the employer was negligent to any degree, the employer will usually PAY!

“Case in Point”

The owners of a Texas mortuary learned the high cost of operating without worker’s compensation insurance – going bare – when a federal bankruptcy judge ordered the immediate sale of their business. The order climaxed a four-year sale of their business. The order climaxed a four-year legal battle with a former employee who received an electrical shock from an embalming machine.

Having chosen not to buy worker’s compensation insurance, the funeral home owners faced unlimited financial liability. In addition, the employers were barred by law from raising such defenses as the worker’s own negligence, his acceptance of the risk, and the negligence of fellow employees. Under the Texas Workers’ Compensation Act, if an employer’s negligence played any role in an accident, the employer bears full legal responsibility.

A state district court ordered the mortuary owners to pay the injured worker $476,800. Unable to pay, the owners filed for bankruptcy but were ordered to sell their business to pay the judgement.

“The Good News”

Farmers has unique programs designed for small business!

Our rates for small businesses have benefited from our overall claims experience. Lowering your cost of claims and improving your loss experience has helped us bring you lower premiums for your Worker’s Compensation coverage.

If you would like for us to contact you about your Worker’s Compensation, please provide us with your contact information and we will call and discuss the opportunities available within Farmer’s Worker’s Compensation program!