Letting your workers comp policy lapse can result in serious legal and financial consequences.
If your workers compensation policy lapses, your business may face serious consequences. These can include:
- Financial penalties
- Lawsuits
- License revocation; and
- Higher premium rates
Additionally, if an employee is injured during this time, you may be held personally liable for covering medical expenses, lost wages, and any rehabilitation services. This can result in significant financial losses and potential legal action from employees.
It's crucial to maintain an active policy to avoid these risks and remain compliant with workers compensation laws.