Workers Compensation protects businesses and employees in the event of work-related illnesses, accidents and death. It pays medical costs and a portion of lost wages for workers. It protects business owners from employee lawsuits. Employers that don’t have the insurance can be liable for any costs out of their own pocket.
The insurance isn’t a one-size-fits-all proposition for businesses in the U.S. Some states require Workers Compensation insurance, while it’s a voluntary decision on the part of the individual business in other states. Certain states require businesses to have the insurance only if they employ a specific number of people or if they’re an LLC company.
Depending on the state, there are specific exclusions on who must be covered and workers that don’t require coverage. Some states factor in the number of hours worked to determine employers that must provide coverage and businesses face fines if they don’t have an active policy in mandatory insurance states.
The statutes in some states have expanded substantially over the years and the insurance now includes occupational illnesses, repetitive stress injuries, and disability claims. Workers Compensation insurance may also encompass workplace violence, rehabilitation, retraining, and mental health conditions such as PTSD.
No matter how many safety precautions a business takes, the potential always exists for on-the-job accidents. Even in states where mandatory Workers Compensation insurance isn’t required, it provides protection for a business’s assets and continued financial health. The insurance covers a wide range of potential situations from falling off a ladder and trip-and-fall accidents to carpal tunnel syndrome and injuries occurring during renovations.
Even if it’s not mandated, many business owners add Workers Compensation to their regular general liability, professional liability or business owner’s policy. The policies are especially advantageous for businesses in industries where the risk of injuries and accidents due to occupational hazards is great.
Workers Compensation insurance is important protection for any business. The cost of medical care even for simple injuries can be extremely expensive and Workers Compensation insurance is just one way that employers can protect themselves and employees.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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