Even with the most stringent safety procedures and thoroughly trained employees, workplace accidents happen. So what if one of your employees falls at work and sustains an injury?

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As an employer, you’re responsible for addressing the incident, and depending on the number of people you employ, may be obligated to carry workers’ compensation insurance to cover costs of medical bills, lost wages, or other damages.

What Is Workers’ Compensation?

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Workers’ compensation – also called workers’ comp, workman’s comp and work comp – is the system put in place to cover medical expenses and lost wages for employees when they’re injured at work. Not only is it meant to protect your employees, but it also protects you should your employee choose to sue for damages.

Often described interchangeably, workers’ compensation insurance is the policy you may be legally required to carry in order to provide this coverage.

Think about it this way: just as you’d need car insurance to cover costs incurred as the result of an auto accident, you also need workers’ compensation insurance to cover any costs incurred as the result of a workplace injury.

How It Works

If your employee is injured on the job, you’re responsible for providing the appropriate forms and information about the claims process. Once the claim is filed and approved, the employee will begin receiving benefits. From there, you and the employee will develop a plan for returning to work.

Buying Workers’ Compensation Insurance

Workers’ compensation is regulated at the state level, so it’s important you learn your state’s requirements. Knowing the rules in your state will help you determine where you can buy workers’ comp insurance, who needs to be covered, and much more.

The price of workers’ comp insurance can vary based on a number of predetermined factors, including your industry, the size of your business, and your claims history. That’s why it’s best to talk to an experienced insurance agent who can provide an accurate estimate.