If an employee becomes injured or ill on the job, workers’ compensation helps cover medical expenses and provides partial wage replacement. It also offers death benefits. Why it matters: 1. Showing employees you care by offering this coverage shows your dedication.
1. Increases Employee Confidence
Workers’ compensation insurance provides financial security to employees by covering medical, rehabilitative therapy, and lost wage expenses that could otherwise cost your business greatly without coverage. Furthermore, it reduces lawsuit risk by limiting legal fees and settlements associated with workplace accidents and illnesses related to liability claims.
Key to lowering workers’ compensation claims is creating and analyzing a proactive safety program and using data for continuous improvement. Ensuring employees have access to safe working environments while offering effective return-to-work programs can significantly lower costs while simultaneously improving employee morale and retention rates. Furthermore, staying current on state and industry regulations that could impact your company is equally essential.
2. Covers Medical Expenses
Workers’ comp covers medical expenses resulting from work-related injuries and illnesses, including emergency room visits, surgeries, and prescription medication expenses. In addition, mileage expenses related to doctor appointments are reimbursed. Worker’s compensation coverage covers ongoing treatment or retraining needed by an employee in order to return to work, unlike health insurance with its deductible costs. Furthermore, this type of coverage helps shield employers against costly lawsuits brought forth by employees – another reason why it is required by most states and an essential tool for any company with employees.
3. Covers Loss of Wages
Workers’ compensation insurance provides lost wage coverage to employees unable to work due to an occupational illness or injury, with state laws typically setting maximum weekly payout amounts for injured employees. Depending on where an injury has occurred, injured employees typically receive two-thirds of their average weekly wages up until that maximum weekly maximum. Small businesses reliant on employees to run their operations require Workers’ Comp insurance as an essential safety net against lawsuits resulting from workplace injuries or illnesses, and your policy’s coverage limit will cover legal fees and settlement payments up to this limit should an employee sue over such injuries or illnesses at work.
4. Covers Rehabilitation
Workers’ compensation provides injured employees with medical treatment and other necessary services, including rehabilitation. It also helps offset some lost wages incurred from missing work due to injuries or illnesses; depending on state regulations, it may even cover funeral costs and death benefits. Provide employees with workers’ comp insurance and businesses can help them recover more quickly and return to productivity, giving employees peace of mind while making them feel valued by the business. Unfortunately, workers’ comp does not cover injuries sustained as a result of third-party accidents at work or illnesses that develop gradually over time.
5. Covers Death Benefits
Workers’ compensation provides invaluable support after a family member dies, covering reasonable burial expenses and weekly support payments to any surviving dependents. While amounts vary by state law, typically two-thirds of their average weekly wages is provided up to a maximum set limit by law. Death benefits cover not only funeral costs but also lost wages from a deceased loved one and can include life and pension plans as well. Although nothing can bring back someone gone too soon, these benefits help grieving families cope with their grief – another important reason why businesses must ensure workers’ comp is in place.
6. Covers Loss of Income
Most states mandate businesses carry workers’ compensation insurance to protect employees against workplace injuries or illnesses and to defend against expensive lawsuits filed as a result. Medical expense coverage includes hospital visits and prescription costs, with some policies also covering ongoing treatments such as physical therapy. Workers’ comp costs vary based on your state and industry. At Insureon, we help small business owners find affordable workers’ comp quotes tailored specifically to their individual needs and industry. Start searching with our free online tool.
7. Covers Occupational Diseases
Workers’ compensation insurance provides income replacement if an employee is injured on the job and requires medical treatment or rehabilitation, including death benefits. It covers their salary while also covering medical costs and rehabilitation.
As opposed to accident-based claims, occupational diseases must be proven as work-related for legal recourse (AOE/COE in legalese). Examples could include hearing loss due to excessive noise exposure at work or lung cancer as a result of tobacco usage at work. Workers’ comp provides valuable coverage that helps businesses reduce financial liability while many states mandate it as part of employment standards compliance requirements for their employees’ wellbeing.
8. Covers Vehicle Injuries
When an employee is injured in a motor vehicle accident, workers’ compensation insurance provides medical expense coverage. Without it, they would need to sue their employer for damages which can be an expensive and lengthy legal battle. Most states mandate businesses carry workers’ compensation insurance for employees, making obtaining an appropriate policy vital to any small business that values workplace safety. Promoting and practicing safety may even help lower premiums via experience rating systems that reward companies that practice safe work environments with reduced premiums.
9. Covers Loss of Earnings
Workers’ compensation insurance is an indispensable business tool, giving injured or ill employees access to benefits they need, while helping protect your business against costly litigation costs. Even the safest businesses may experience incidents that leave an employee injured or sick, without adequate coverage, the costs can quickly add up. Workers’ comp policies vary in cost depending on state laws and the size and nature of your business. To find the ideal option for you, reach out to an agent or carrier in your area.
