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Small business owners are unfamiliar with changes and dangers in the insurance market, according to the Insurance Journal. But what they don't know could hurt them.

A recent poll showed that 85% of small business owners were ignorant to the failure of several self-insuring workers' compensation groups due to the recent financial situation on Wall Street. With all of the financial concerns affecting small businesses these days, it's easy to let some things fall to the wayside.

If the health insurance company deems an employee's malady as work-related, the business and/or group can be sued. But did you know that businesses are legally responsible for the entire costs of workers' compensation claims if their self-insurance group fails? Only a third of those polled did.

That means the owner of a small handyman business may think he has himself covered well, but finds himself unable to keep his business when an employee falls off a ladder. His self-insurance trust was deficient due to a string of smaller claims- including those claims from other businesses in his group, so this one debilitating injury is financially crushing.

But why do owners select these trusts instead of obtaining private insurance? They are gambling that the low out-of-pocket cost of a self-insured trust will counter any claim they may face.

The benefits of going cheap on workman's compensation and small business medical insurance are not worth the risk. With medical bills causing so many credit problems for individuals, it is vital for employers to offer the best health insurance coverage that can be afforded.

Ideally, an employer should discuss health insurance options and risks with his employees.