There are a number of benefits to running a small business in a rural area. Compared to the city, rural businesses experience lower operating costs, including real estate and labor expenses.
As well as this, there’s also less competition, with rural regions generally having fewer businesses competing for the same customer base. But while there are distinct differences – and advantages – between running a business in a rural region compared to a major metropolitan area, there are some things that should remain the same.
Insurance is one of them. No matter the location, business insurance is a critical element for any business, helping it to face and overcome challenges like general liability, cyber liability – even rural businesses are not immune to the threat of cyberattacks – and workers’ compensation.
Workers’ Compensation Insurance, specifically, can be a game-changer. Below, we’re going to look at exactly why this is, and how this type of insurance can help if you’re operating a small business outside of a city.
Workers’ Compensation Insurance: Explained
Workers’ Compensation Insurance is a type of insurance that provides financial protection to employees who suffer job-related injuries or illnesses. This includes coverage for medical expenses, lost wages, and rehabilitation costs, and it can also provide benefits to families in the event of a fatal accident. In terms of how it works, let’s say an employee is injured or becomes ill on the job.
They would then report the incident to their employer, and the employer would file a claim with the insurance provider. Once the claim is approved, the employee can start receiving benefits, and the business itself can be protected from legal liability, and the potential financial burden the incident could have brought.
In the US, businesses with a certain number of employees are required to carry workers’ compensation, and failing to comply with this legal requirement can result in a significant fine. It’s your job then – especially if you’re a smaller, rural company – to look at your state’s specific jurisdiction, obtain a workers Compensation Insurance quote, and ensure your company is covered as soon as possible.
The Importance for Small Rural Companies
We mentioned just then that you should obtain a quote “especially” if you’re a smaller, rural company, so why is this the case? Well, according to a recent study, workers in rural settings are far more likely to get injured than workers in urban settings.
This is due to a number of factors, including the types of jobs and industries outside of the city, the working conditions, and access to healthcare. Indeed, injury rates increase depending on how rural a company is, and the more injuries there are in a workplace, the more likely it is that legal claims will be made against a company.
With Workers’ Compensation Insurance, you can make sure that your business is financially protected in such an event, with medical expenses, lost wages, and legal fees all catered for. This isn’t just beneficial from a financial point of view, but also a reputational one. As a small company, you can’t afford to lose your reputation. In rural areas, where word gets around fast, even the slightest reputational loss can be hugely damaging, resulting in customers looking elsewhere and potential employees choosing other companies instead of yours.
If your company is protected, however, you can handle any claims far more effectively, showing your customers and employees that you care about their welfare and avoiding the potential burden of escalating legal fees and prolonged disputes that put the business’s public image at risk.
Conclusion
Running a small business outside of the city comes with its own unique challenges, but Workers’ Compensation Insurance works to deal with a few of them. This is why we recommend every company look into the local regulations and, even if it’s not a necessity, look into getting a quote. You simply never know when things are going to go wrong – and just how quickly they can escalate from there. With this type of insurance, you can keep running the business without the stress of future lawsuits, ensuring your finances stay protected and your reputation remains strong for the long term.
