Worker's compensation insurance is a must for businesses today. This insurance not only helps workers pay for medical costs from injuries and illnesses employees experience in the workplace, but it also helps to provide a source of income for your employees while they recover. These costs are covered by the worker's comp insurance. Most importantly, for businesses, though, the worker's compensation insurance protects the business from paying those costs out of pocket. These are a few critical reasons why businesses need to provide worker's compensation protection for their employees.
Workers Comp Coverage Is Required by Law for Most Businesses
All U.S. states have some laws regarding worker's compensation protection and what types of protection employers are required to provide. The penalties for failing to insure your employees against workplace injuries are substantial.
While some employers, small businesses, for instance, are exempt in some states, those exemptions are not universal. Regardless, it is wise for employers to provide this essential protection to spare you the financial liability if employees suffer workplace injuries.
Workers Comp Insurance Provides Protection for Your Employees
What many employers don't realize is that employees appreciate the knowledge that their medical needs will be met if they are injured on the job. Even more, employees appreciate the knowledge that their income, at least a portion of it, will be protected if their injuries prohibit them from working.
Providing this protection for employees improves employee morale, which is good for business. For the employer, you have the knowledge that you are protecting your most important asset — the people who work for you. Your employees believe that you're providing for their needs if something happens to them because of the work they do for you.
Workers Compensation Offers Shielding for Businesses from Some Legal Actions
If you do not provide worker's compensation insurance for your employees, their families can sue your business for damages if they are injured, become ill, become disabled, or die because of workplace injuries. One lawsuit can be devastating for your business in legal fees alone. Add to that added awards that may include things like pain and suffering, lifetime wage replacement, and other awards and the losses are profound. This critical insurance provides some shield for employers against these types of lawsuits.
As you can see, worker's compensation is one of the most important insurance products for employers to purchase for their employees. Even if you're not required by law to do so.Share