Workers' compensation is a mandatory type of business insurance that protects employees who become injured or ill while on the job by providing medical coverage and income replacement. It also protects employers who are being sued by employees for workplace conditions that cause work related injury or illness.
The workers’ compensation environment is growing increasingly complex and challenging as new issues continue to arise. Prescription drugs, marijuana legalization, an aging workforce, and a stream of legal and regulatory changes are all contributing to more complex workers’ compensation claims.
There is no shortage of potential hazards and risks that employees face. Employees could be harmed on the job while simply carrying out their daily work.
What can workers' compensation do for my business?
Workers' compensation not only offers valuable coverage for employees who are injured on the job or while performing work-related duties, it also protects your business. Workers' compensation can:
- Pay for medical expenses.
- Provide a portion of lost income.
- Protect you from lawsuits filed by employees injured on the job.
Why does my business need workers' compensation coverage?
As a business owner, you need to have a policy in place before hiring that first employee. Most states require employers to cover any full-time or part-time employees. Coverage requirements are set by each state. Failure to carry this insurance or otherwise meet state regulations can leave an employer exposed not only to paying these benefits out of pocket, but also to paying penalties levied by the state.
What types of injuries does it cover?
Workers' compensation can cover:
- Injuries employees may suffer while working on your business' premises: For example, slipping on a wet floor and breaking an arm.
- Injuries suffered anywhere else while your employee is working: For example, traveling on business or running a work-related errand.
- Certain illnesses and occupational diseases contracted as a result of employment: For example, developing a lung disease caused by chemical exposures while on the job.
- Problems and illnesses that are developed over a long period of time of doing the same activity: For example, carpal tunnel syndrome or back problems from some sort of repetitious movement.