Workers compensation insurance is a type of insurance policy that provides financial protection for employees in the event of a workplace injury. In most states, this coverage is mandatory, and employers are required to offer it as part of the workers’ compensation benefits package. In our guide, we cover the basics you need to know in order to understand workers’ compensation insurance.
What Is Workers’ Compensation Insurance?
Simply put, workers’ compensation insurance is a financial protection policy for employers that covers their workers in the event of an injury or illness. This insurance is required by law in most states and allows the injured employee to seek compensation for the medical costs and lost wages they incurred due to the injury. This coverage is most commonly provided in conjunction with the other workers’ compensation benefits, including medical and disability payments.
Why is it Important?
Your employees are part of your company, and they’re a crucial part of your team. When they’re injured at work, you want to make sure they receive proper medical treatment so they’re able to return to work as soon as possible. Most state laws require employers to offer this insurance to employees, but many people are under the impression that it only applies to workers who are on construction sites. Workers’ compensation insurance applies to all businesses as there is a risk of injury in many industries. For example, suppose an employee is injured due to another person at your company, such as suffering a severe scald from spilled food or hot drinks, they will be covered by workers’ compensation insurance.
Workers’ Comp Benefits
Unlike when you make a claim following a car accident where you could be waiting months to receive compensation, workers’ compensation insurance ensures that staff is compensated within 21 days of the injury occurring. It is a no-fault-statute, which means that any accident that happens during the workday will likely be covered by the policy regardless of who is at fault.
When you purchase workers’ compensation insurance from a company like The Hartford, you know exactly what you are covered for and don’t need to worry about potentially damaging costs hitting your company in the event of an injury at work.
What Types of Injuries are Covered?
Workers’ compensation insurance is designed to cover a range of accidents, including slips and falls, exposure to harmful substances, and work-related auto accidents. The workers’ compensation insurance that an employer provides to staff must also cover any specific types of accidents that are more likely to occur in the business, such as machinery-related injuries if your employees will be working in a factory or other industries that work closely with large machinery.
Workers’ compensation insurance not only covers injuries but it also can cover occupational diseases. For example, if you hire an employee who suffers from allergies who is then placed in a dusty environment to work, they may develop asthma due to the working conditions. This occupational disease and the subsequent costs your member of staff incurs, as a result, will be covered under your insurance policy.
