Workers’ compensation is insurance that’s required for businesses. The broad intention is to protect employees and potentially compensate them for work-related injuries or illnesses. While no employee expects to get sick or injured when at work, life just happens sometimes. Particularly with accidents, it can be something as seemingly minor as a ceiling tile that comes loose, falls onto an employee’s head, and gives them a concussion. Slips on wet floors are also a common one. Here is why workers’ comp is so important to have, both for employers and employees.
Many companies don’t make vast profits. As such, it can often only take one major financial setback to put the unsuspecting business in dire straits. Workers comp insurance is designed to ensure that an employee’s claim for an accident or illness at work won’t be something that completely derails the company’s plans for the future.
With workers comp insurance, the coverage addresses concerns like medical costs for the employee and covers a significant proportion of their lost wages while they’re unable to work. It also provides benefits for a disability and funeral costs if it should come to that. Businesses can get a workers comp insurance quote for their workers in minutes.
If an employee sustains an injury or become ill and cannot work for a few weeks or longer, it can create difficult times, not just for their health but added stress due to a loss of income, either to the individual or for the family tasked with taking care of them. Then there is the added financial pressure of out-of-pocket medical bills to pay.
Given that medical care is often expensive and treatment for injuries can extend out for several weeks or longer, the bills from the hospital can quickly become cumbersome. Thus, along with the loss of income at the same time, sick or injured workers may be placed in a difficult position.
Fortunately, employees are covered due to workers’ comp through their employer to protect against the results of a workplace injury and illness.
Yes, workers’ comp is necessary insurance to be held by businesses. While some forms of business insurance aren’t required, this isn’t one of those. Workers’ compensation is mandatory in nearly all states, although regulations vary between different states.
Compensation laws relating to employees are a complicated area. Many states have compensation boards that review each case. Others simply route the case through the court system. The process can be both costly and time-consuming too.
Also, if an employee is unable to work in their original position due to an injury, whether it’s become a disability is a question mark. What constitutes a disability will vary depending on what happened and how the employee is now being affected.
Workers’ compensation insurance protects against unexpected outcomes with employees. It’s an unfortunate reality that accidents or illnesses sometimes occur despite best attempts to avoid them. However, companies don’t have to fear the financial costs with the right insurance coverage, and employees are better protected.