As an employer, it’s your responsibility to keep employees healthy and safe on the job. But even with safety measures in place, accidents can still happen—resulting in costly workplace injuries and illnesses.
That’s why it’s crucial for your organization to have workers’ compensation insurance. This form of coverage can provide the following benefits to both your employees and your business. But first, is workers' comp insurance necessary?
Do I Need Workers' Compensation Insurance?
Workers' compensation insurance is required in most states if your business employs a certain number of people. Depending on state law, your company may be required to carry a policy covering all current employees. Non-compliance could result in penalties and fines.
However, even if you aren't legally required to carry coverage, it still might be a good idea. Employers can be held liable anytime a worker is injured on the job, if the injury or illness is a work-related accident.
Like any insurance policy, workers' compensation insurance can help protect your business from expensive claims. So whether or not your state requires it, let's dive into six benefits of carrying a workers' compensation policy.
Why You Should Carry Work Comp Insurance
1. Coverage for medical expenses
In the event that an employee requires medical attention for a work-related illness or injury, workers’ compensation insurance can cover the accompanying treatment costs. This includes expenses related to hospital visits, medical procedures and prescriptions.
2. Protection against lost wages
After an employee becomes ill or injured at work, they will likely need to take time off to properly recover. During this time, workers’ compensation coverage can help reimburse some of the employee’s lost wages.
3. Coverage for ongoing care and rehabilitation
A severe work-related illness or injury can leave an employee with recovery costs that extend far beyond a single hospital visit. Workers’ compensation insurance can cover these ongoing care expenses, such as physical therapy.
4. Death benefits
In the tragic event that an employee passes away in a work-related incident, workers’ compensation coverage can provide death benefits to the employee’s family members.
5. Compliance assistance
Although specific rules vary by state, the majority of organizations with more than one employee are legally required to have workers’ compensation insurance. In other words, this form of coverage not only benefits employees, but also keeps you in compliance with state law.
6. Protection for your business
Workers’ compensation insurance also typically provides organizations with legal liability coverage. In the event that an organization is sued for negligence related to a workplace injury or illness, workers’ compensation insurance can help cover attorney fees, court costs, and settlements or judgments.
You can set some of these amounts when you select the policy's limits of liability.
Want to Learn More About Workers’ Compensation Insurance?
Workplace health and safety incidents can carry serious ramifications. To discuss your organization’s unique health and safety risks and learn more about workers’ compensation coverage, contact us today.