What is workers’ comp insurance?

Basically, workers’ compensation insurance is a coverage that pays for employees’ medical expenses and a part of lost pay after work-related injuries. In the United States, most states require some form of workers’ comp insurance for organizations with employees. These organizations include small and medium enterprises.

 

Each state is in charge of its own workers’ compensation program. This means state laws for workers’ comp can be different depending on your business location.

 

What is workers’ comp insurance?

 

You can rely on workers’ comp if you or an employee needs medical care or time off due to a workplace injury or if an injured employee sues you for failing to prevent an accident. If you do not use workers’ comp, your business will be responsible for any and all medical bills and legal fees. Furthermore, most states impose costly penalties for non-compliance.

 

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Importance of workers’ compensation

 

Employers need to ensure that the workplace in which their workers spend most of the time throughout the day is safe. Even in the safest spaces, accidents happen. Workers’ compensation insurance provides financial benefits for employees who have experienced job-related injuries or illnesses. This insurance reimburses medical expenses and lost wages. 

 

The policy provides benefits whether the fault is that of the employer, the employee, a co-worker or a customer. By taking advantage of a workers’ compensation policy, the employee could have a limited ability to sue for additional damages.

 

Workers’ compensation insurance is important for small and medium companies because it helps them avoid the actual cost of medical expenses and lost wages.

 

1 | In the majority of states, workers’ compensation is considered a requirement. Be sure to check out what is required by the law in your specific area by visiting the U.S. Department of Labor’s State Workers’ Compensation Officials webpage and clicking through to your state’s site.

 

2 | Workers’ compensation protects organizations by helping avoid the actual cost of medical care and lost wages. A major claim can generate big problems for you and your business operations. 

 

Having access to effective loss control resources can help avoid accidents.  With sound claims management, your injured employees can return to work sooner – thereby improving productivity and saving your business money.

 

3 | Workers’ compensation helps protect your most valuable asset, your workforce. If your injured workers get the help they need, they can get back to full strength and help your business continue to succeed.

 

Midtown HR is the company behind a hundred happy companies. We are focused on providing simple solutions for payroll and taxes, proposing benefits that really feel like benefits, keeping up with employment law and also helping protect your team. Let ‘s talk!