Workers Compensation Insurance

Workers Compensation Insurance serves to protect you and your employees in the event of injury.

Workers Compensation Insurance

What is workers compensation insurance?

Workers’ compensation insurance, commonly referred to as workers’ comp, is insurance that covers employees who are injured on the job or become ill. This type of insurance works to cover the employees’ medical expenses and a portion of the lost wages. Coverage also usually includes both rehabilitation and death benefits.

An employee may only receive benefits if they become injured or ill due to the duties of their job or employment. Some of the things a workers compensation insurance policy can cover include injuries caused by lifting heavy object and equipment, sustaining and injury due to explosions or fires, or slipping on oily or wet surfaces.

It doesn’t cover employees who become injured due to actions that aren’t within the scope of their employment. Things like playing basketball on a day off, wrecking an atv, or falling at home wouldn’t usually be covered under workers compensation insurance.

The Importance of carrying quality workers compensation insurance

The answer is, almost every business! Workers’ Compensation insurance is required by law in almost every single state, although some exemptions do exist. However, choosing to forego workers’ comp coverage may put your business at a high financial risk. Not only is the risk of facing lawsuits for work related injuries very high, you’ll also likely be fined for breaking the law.

Businesses are required, with very little exception, to carry workers’ compensation coverage. An important aspect to remember is that workers’ compensation insurance protects not only your employees, but your business as well. For example, if your insurance is compliant with state law, employees who receive benefits are unable to sue you for their lost wages or injuries.