Workers Compensation Insurance

Workers comp insurance is commercial insurance that is required for all businesses to carry in each state of the nation. Workers comp helps protect both the business owner and each employee in the case of accidental injury, illness or disease that is caused while performing their duties at your place of business.

Workers comp insurance helps protect your employees at any time they are providing work and services for you, regardless of whether they are on or off of your business premises.

Workers comp covers health and medical bills for employees that are injured on the job, and it protects you as an employer from being sued in the event of an injury or sickness. Protection specifics and amounts can vary slightly from one state to another, and the types of illnesses or disease that are covered depend upon whether the sickness is relevant to your business or your employee’s job duties.

Workers compensation insurance is designed to help your employees deal with added expenses or lost income that arises from job injuries. Depending on your business insurance level of workers comp coverage and the rules and laws laid out by the state that your business is in, workers comp insurance covers a variety of injury and accident related expenses.

For instance, if an employee is injured at the workplace or a job site and needs to be transported to the hospital by ambulance or other means of transportation, workers compensation insurance covers the cost of the ambulance transportation and any city related charges.

Workers comp also pays the employee’s medical, doctor and hospital bills if additional care is required.

Workers comp may reimburse the injured employee for wages they lose if they are unable to work due to a recovery period. For example, if an auto mechanic breaks his arm because a hoist chain snaps while he is working, his doctor may require him to rest without work or stress to the arm for four weeks. Workers compensation will provide the employee with the lost wages during that rest and recovery period.

If one of your employee’s becomes temporarily or permanently disabled due to an accident or injury caused by the job, workers comp covers them during their disability period.

If you own a residential contracting company and your employees conduct their work at your customer’s homes, workers compensation coverage protects you and your employees while they are at the job site. For example, if one of your construction workers falls through a weak spot in the roof of a building and is temporarily unable to walk due to back injuries, your workers comp insurance coverage will take care of his medical bills, pay him lost wages, and continue to care for him while he is disabled and unable to work.

If the construction worker is found to be permanently disabled and unable to return to his normal line of work, workers compensation covers for such related expenses as well.

When an employee becomes temporarily or permanently disabled , they may simply be unable to work in the same field. A construction worker with a broken back that still has full use of his arms can potentially be retrained for new employment that is completely different than the profession he was in before his injury.

Workers comp insurance covers the costs associated with retraining and vocational rehabiliation when temporary or permanent disability events occur that cause your employees to change professions in order to continue making a living.

Workers comp insurance also provides supplemental job displacement benefits which means it covers the costs associated with your employees having to find new employment due to an injury or accident at their previous work place.

Workers compensation provides standard death benefits to your employee’s family in the event that a major accident occurs that causes an employee to lose his/her life.

Regardless of how large or small your business is, by law all employers in the United States are required to have and maintain active workers comp insurance. Even if you only have one employee on your payroll, you must have that employee covered by workers comp or else you run the risk of getting into serious legal issues.

If an employer fails to acquire and maintain valid workers comp insurance, the company and its owners can be subjected to stiff fines and prison sentences. In the state of California, the penalties for an employer who doesn’t carry workers comp insurance may include a fine up to $10,000 or up to a one year stay in the county jail. Lack of workers comp insurance is a criminal offense in California but if the judge or judicial system decides that your specific case is severe they may choose to give you both jail time and fines up to $100,000.

Having workers comp insurance for your employees is not just good for you because it keeps you out of legal trouble, but it also has several other commercial benefits. Without workers compensation coverage, you stand to lose your entire business from the slightest accident.

If an employee trips over his own feet while carrying a stack of files and paperwork in your office, he may elect to sue you as the owner of the company, or the company in general depending on your business entity. If your business is not covered by workers compensation insurance or it does not have adequate levels of coverage then you are exposing your entire business to bankruptcy because of having to pay all of the associated expenses out of your own pocket.

While small accidents may not involve massive expenses, there is always the chance that a major injury or accident will occur. If your business is not adequately covered by workers comp insurance and multiple employees become injured in an accident at the same time or someone loses their life from a major accident, than your business may not have enough assets and liquidity to cover all of the accumulated damages in full.

So make sure you have adequate amount of insurance coverage that is required by law so that you can stay out of legal troubles, and make sure you have the recommended amount of coverage for the type of company you own to ensure that you do not get wiped out by one incident.

 

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