Workers compensation insurance covers workers injured on the job, whether they are hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work related illnesses.
As an employer, you have a legal responsibility to your employees to make the workplace a safe environment. However, it’s important to remember that accidents happen, even when every reasonable safety measure has been taken.
According to most state laws, if you have employees, you are required to carry some form of Workers Compensation Insurance. Even in non-mandatory states, Workers Compensation coverage is a very good idea, particularly if you have multiple employees or their work entails hazardous operations.
Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services, and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved.
Workers compensation insurance must be bought as a separate policy. Although in home businesses and business owners’ policies (BOPs) are sold as package policies, they don’t include coverage for workers’ injuries.
The benefits of workers compensation include:
- Providing employees injured on the job with fixed monetary awards.
- Eliminating the need for litigation and creates simple processes for the employee.
- Reducing the risk for employers, as states often limit the amount of damages an injured employee can recover
- Providing payments to injured workers without regard to who was at fault in an accident, for time lost from work, and for medical rehabilitation services.
- Providing death benefits to surviving spouses and dependents.
Workers Compensation Insurance is designed to help companies pay these benefits. This insurance is not health insurance. Workers Compensation is intended to protect employees and is designed specifically for injuries sustained while on the job.
Still have questions? Contact us at Wayne Anthony Insurance today; we are happy to help!