Whether you have one employee or 50 employees, your business can benefit from workers’ compensation insurance. It can cover medical bills and lost wages for work-related illnesses, injuries and lawsuits. Most US states require workers’ compensation insurance, although the details may vary from state to state. Unfortunately, many small business owners overlook the need and importance of this type of business insurance. Yet, as soon as they hire an employee, they are legally required to purchase this coverage.

Find out more reasons why you need workers’ compensation insurance.

Compensation for workers is essential as most states require it. It covers lost wages and medical expenses caused by work-related injuries, and most policies cover employee lawsuits. If you don’t, an injury or illness can significantly affect your business, as you have to meet the expenses out of pocket. It also protects your workforce, which is your company’s most valuable asset. If they get the support they need, they can return to work with full strength. It will also make them feel that you appreciate them and, in turn, help your business continue to operate and succeed.

  • Protection from lawsuits

Some injured workers choose to sue employers because of their negligence or failure to prevent a work-related accident. Most workers comp insurance online will cover lawsuits as an employer’s liability insurance. If an employee files a complaint, your insurance will pay attorney fees, court costs, judgments and settlements.

  • Coverage of fatal accidents

Most workers’ compensation insurance covers death benefits. The surviving family can use them to pay for burial or funeral costs. The police can also provide financial assistance to the family of the deceased worker.

Some scenarios would result in workers’ compensation claims being denied. These include commuting, drug addiction, and fights at work. For example, a worker can only be covered if they use a company car and have no physical office, but if they drive to and from work they are excluded. Additionally, most states exclude intoxication and drug abuse as contributing factors to the injury. The same applies if an injury is due to a personal fight with a co-worker, unless the fight was work-related.

Conclusion

Workers’ compensation insurance pays employees significant benefits in the event of illness or injury caused by their work, regardless of who is at fault. This includes ongoing care such as physiotherapy and the cost of lost wages due to inability to work. It is important that your business complies, as most states require it. More importantly, it helps protect against sudden medical bills or lost wages. While this doesn’t guarantee that a worker won’t sue you for injuries sustained in the line of duty, workers’ compensation laws primarily prevent workers from suing their employer.

It’s also important to note that your general liability insurance or health insurance does not cover workers’ compensation claims. On the other hand, private health insurance covers illnesses or injuries for non-work related reasons. Thus, it does not offer payment for missed wages.

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