As a business owner, going over every single insurance and safety requirement is a must. This is particularly true when we will have clients and employees at our office. It is also true when we have the company’s facilities or assets such as vehicles. In order to make sure everybody is safe and well protected, a workers’ compensation insurance policy should be the first step.
Before talking to our insurance broker, we need to understand some essential aspects. To begin with, we should know exactly what workers’ compensation insurance is and how it works. Then, we must have a clear understanding of what it covers and what it doesn’t. Knowing why you need this kind of policy for your business will be of great help, too.
What Exactly Is Workers’ Compensation Insurance?
A Workers’ Compensation insurance policy provides coverage for medical and wage expenses in case of an injury or illness. This type of coverage offers protection to your business in case one of your employees happened to have an accident or become ill at work. Every business is required to offer this type of protection by law, regardless of the state. However, each state might have different and specific requirements. Offering WCI is an essential aspect of running a business, and without this policy, there is no way to run a business.
What Does It Cover?
When looking for workers’ comp insurance, we should always understand exactly what our policy will cover. Each provider will offer different levels of protection. However, there are five scenarios that every WCI should cover.
To begin with, our workers’ comp will cover the medical costs of treating immediate injuries and illnesses. If any of these too happened as a result of a work-related situation, we must be responsible for the expenses it might generate. Covering the lost wages of an injured or ill employee is part of the coverage, too. This is particularly important if our employees can’t work for a given period of time as a result of a work-related accident. Also, the costs of any ongoing care, such as surgery or rehabilitation, are covered by this insurance policy.
If a work-related accident happened to end with the death of an employee, we would be protected, too. A workers’ compensation insurance policy should cover the funeral expenses and death benefits costs to your employees’ families.
This kind of policy will also cover legal charges that would generate in case an employee decided to take legal action against your company. If an employee thinks your company is directly responsible for an accident, they might decide to sue you. Litigation can become quite costly, but this policy would take care of such costs.
Why Do I Need Workers’ Compensation Anyway?
The main reason why we must consider a workers’ comp insurance is because it is mandatory. Every state requires businesses to offer this benefit to their employees. Failing to do so could cause severe and costly repercussions for our company. This could include having to pay medical expenses from our own pocket, fines, and fees, even imprisonment.
Besides, offering an attractive and comprehensive WCI could help us improve our employer brand. Job seekers often look for this kind of benefit. Therefore, we could attract better candidates and later retain these high-quality employees.