Lee from Junk Removal Authority talks about if and when you should get Workers Comp insurance.

Hey guys! How’s everybody doing today? One of the questions I got, I had another consultant call today. A gentleman out of Louisville, Kentucky. He didn’t ask me this question. We’ve covered a lot of great stuff in that call, but questions I get fairly often are related to workers’ compensation, especially those you all just getting into the business. You’re trying to skip workers’ compensation as would not skip workers’ compensation insurance. Insurance exists to protect you from financial ruin. Workers’ compensation can ruin you if one of your employees gets injured and you don’t have a workers’ compensation policy. You’re still required by law. You’re still required to pay his medical bills and to pay him for missed time. If you don’t pay him, then he’s got the right to sue you in court and he will win. You will be responsible for paying that. If somebody goes out and they get seriously injured, he could run you out of business.


They can take your house. They can take every asset you ever had. It could literally ruin you if somebody has a serious injury. So, going out and get workers’ compensation. It’s not terribly expensive at the start. A workers’ compensation will become a major expense as you grow and as your payroll grows because it’s done on a basis of payroll. There was one situation where maybe you don’t have to get workers’ compensation when you start. There’s two situations. That is, that you and a partner have started it. Both of you have percentage of ownership in the business. You’re both considered an officer of the corporation. In that case, you can wave workers’ compensation. So, you don’t have to have workers’ compensation. If you just started a business and it’s a family member. It’s your son, brother or anything like that. A direct family member, you might be able to escape workers’ compensation at that point.


Especially if it is your son or something like that. That’s up to you. As soon as you bring in any outside employees, I don’t care if it’s a friend. Anybody else outside of your family and outside of the ownership of your organization. You need to have workers’ compensation because it can literally ruin you. So, make that a priority to get. Don’t have that “When I have time.” and ” I have to have.” sort of deal. There’s no question about it. Just to looking to protect everybody. Always makes sure you have good insurance because that can certainly give you a lot of trouble if you don’t. Talk to everybody soon!