Running a business can come with many risks, not least of which is the potential for costly accidents on the job. Before a mishap damages your business financially, you should ensure that all of your employees are covered by workers’ compensation insurance.
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What Is Workers’ Compensation Insurance?
This is a contract entered into by a business and an insurance provider which states that the insurer will pay for the cost of any medical expenses incurred by the employee resulting from a workplace injury or illness. Not only does the contract cover medical costs, it also covers lost wages, death benefits and the expenses arising from a permanent disability. In many cases, the contract will also protect the business against any lawsuits filed by an employee.
With the exception of a few states, a worker’s compensation policy is mandatory for any business with employees. In those cases where it is not mandatory, it is highly recommended to protect business owners from the expenses of workplace accidents.
The Benefits of Having Workers’ Compensation Insurance
If an employee injures themselves on the job, this type of policy can save a company from financial ruin. Without an insurance policy, any out-of-pocket expenses become the responsibility of the company, which could bankrupt a business if the injury is a very severe one.
An insurance policy also protects a business from a number of legal issues, such as criminal charges and fines if the company is found to be non-compliant with state regulations. In addition, if a company does not have this type of coverage, they will not be able to use certain common law defenses if the matter is taken to court.
What Does Workers’ Compensation Cover?
A workers’ compensation insurance policy will cover most types of injuries that arise from work-related duties, such as slip-and-fall accidents. The coverage will usually handle any medical bills and rehabilitation costs, payments for missed wages and disability compensation for any past, present or future economic losses. In addition, if an employee dies, their family will normally receive compensation for funeral costs, legal expenses arising from any litigation and any death benefits that they may be entitled to.
Don’t leave your business at risk. Let one of our agents walk you through the various options of workers’ compensation insurance that are available.