Workers’ Compensation Insurance
Employers in all 50 U.S. States must provide workers’ compensation insurance for their employees. Businesses must absorb this expense for themselves. They cannot pass the costs of having workers’ compensation coverage on to their employees.
What is Workers’ Compensation Insurance?
Workers’ Compensation insurance is a type of insurance coverage that provides wage replacement and covers the costs of medical treatment and care, including long-term treatment, physical therapy, etc. in the event of an accident, injury, illness, or death that occurs on the job.
In exchange for this coverage, the workers relinquish their rights to sue the employer for negligence if the workers become ill, have accidents, or get injured while on the job.
There are exceptions and extenuating circumstances, of course, but this is the gist of it.
What Types of Benefits does Workers’ Compensation Offer Employees?
Workers’ compensation covers basic medical treatment after an accident or injury, but it also does so much more. In addition to medical treatment that is sorely needed once accidents occur, it also offers financial benefits to help replace the loss of income while he or she is in the hospital or recovering from the injury. In the event of a permanent disability, workers’ compensation will help replace some of the lost income along with providing any ongoing medical treatment that is required.
In the event that an employee dies as the result of an injury received or illness contracted on the job, workers’ compensation insurance provides death benefits to the surviving family of the employee.
Does Your Business Need Workers’ Compensation Insurance?
State laws vary greatly from one state to the next. However, if your business has employees, it is likely that your business needs the security workers’ compensation insurance coverage provides for your business as well as the health, morale, and continued loyalty of your staff.
Because state laws vary so greatly, though, it is always wise to work with a local insurance provider so that you know you’re getting the most accurate advice and complete coverage available within your state.