As an employer, you have a responsibility to the people who work for you. In fact, certain laws are in place in most states that require employers to provide financially for their employees who become injured on the job.
What Is Worker’s Compensation Insurance?
Intended to protect a company’s employees in the event of an accident occurring during the workday, worker’s compensation insurance is also designed to help the employers pay for the benefits given to the injured party. It is not health insurance, despite the fact that it is designed to help compensate an employee who has been injured on the job and is unable to work.
While many states require an employer to obtain worker’s compensation insurance, it is a good idea to get it even if your business is located in a state where it isn’t mandatory. This is particularly true for businesses in which risk is part of the job.
An employee is eligible to receive benefits if he is injured:
- At the workplace
- In an auto accident while on company business
- Becomes ill with a work-related illness
Do You Need Worker’s Compensation Insurance?
You might be wondering why your business needs workman’s compensation insurance if no one has ever been injured on the job. The truth is that an employee can still become inured even if a company has every precaution put into place.
What Are Some of the Benefits of Worker’s Compensation Insurance?
Whether or not your company is required by law to obtain this type of insurance coverage, doing so provides you with certain advantages that should not be overlooked. These benefits include:
- Eliminates the litigation process, eliminating unnecessary costs
- Simplifies the employee’s path to benefits, minimizing the employee’s frustration
- Limits the monetary awards given to the employee, controlling the employer’s financial risks
- Provides the injured employee with benefits to cover the cost of medical care as well as the loss of income during the time that treatment/recovery takes place
What Does Worker’s Compensation Insurance Pay for?
Although each state has specific regulations, this type of insurance provides payments for each of the following circumstances:
- Medical treatment
- Rehabilitation services
- Death benefits to surviving spouse and dependents