4 Reasons Why You Need Worker’s Compensation Insurance
Why Is Worker’s Compensation Insurance Important?
Worker’s compensation law requirements for employers vary by state. If an employee has a work-related accident, these regulations help ensure their employer provides coverage. That is why worker’ compensation insurance is needed.
Worker’s compensation insurance provides certain benefits —medical and wages— to people who become ill or injured at work. In detail, this type of insurance offers lost wages, medical expenses, and rehab costs to employees if they suffer an accident while doing a work-related activity.
The main goal of this type of insurance is to protect employers and employees.
Legal Liability Coverage
If an employee is involved in an accident while they’re on the job, worker’s compensation provides legal liability for your business.
When an employee becomes disabled while performing a work-related activity, a portion of their wages is lost. Worker’s compensation will cover the expenses when disabilities are considered temporary partial, temporary total, permeant partial, or permanent total.
Vocational Rehab Expenses
Imagine an employee gets injured on the job and becomes unable to continue doing the same type of work. In this case, a worker’s compensation can cover the cost of training that employees need to perform a new job within your company. If the employee doesn’t stay with the company, worker’s compensation can cover the cost of them getting a new job somewhere else.
Lost Wages Compensation
During the time an employee is temporarily disabled, worker’s compensation provides coverage for half of their usual income.
Say Yes! to Worker’s Compensation Insurance
Beyond the fact that it is mandatory in almost every state, worker’s compensation insurance minimizes financial risk for your business. Facing a lawsuit for workplace injuries is common, but being fined for breaking the law could impact your financial stability. Worker’s compensation insurance is not just supposed to protect your employees; it is also to protect your business too.