What Business Owners Need To Know About Workers Compensation Insurance

In most states, businesses must have worker’s compensation available to all employees in the event that they experience a work-related illness or injury. It is similar to providing health insurance, as it provides financial assistance to those who are off from work due to injury or sickness. However, it is only applied once the employee is hurt or sick. Keep reading to learn more about worker’s compensation and what business owners need to know about it.

What is Workers Compensation?

There are four different benefits available within worker’s compensation, including medical, disability, rehabilitation, and death benefits. Medical benefits include coverage for doctor appointments, hospital care and/or emergency room care, medication, physical therapy, medical equipment (such as crutches or a wheelchair), and chronic pain management. Disability benefits include covering lost wages for an employee who is out of work due to an injury. The amount given is determined by state regulations, the type of disability, and how much the individual earns on a weekly basis. Rehabilitation benefits involve supporting those who are disabled and unable to come back to work. Death benefits are much like life insurance which supports family members of the employee. It can also cover funeral costs.

How Does it Work?

After an employee reports an injury or an illness, the business owner will then file a claim. After the claim is approved, the insurance company will then cover the costs involved. It is important to inform all employees that they must report an injury immediately. Encourage them to seek medical attention as well. Workers compensation coverage costs are covered by the employer only– you cannot ask your employees to contribute to cover costs.

When Are Business Required to Have It?

If you have even just one employee, then you are in need of worker’s compensation. If he or she becomes injured while on the job, you may be liable for medical expenses or face lawsuits. You may be required to secure worker’s compensation insurance before or immediately following your first hire. The only states where this is an exception are currently Texas and South Dakota. No matter which state you live in, it is important to have this coverage to protect your employees as well as your business.

For more information on worker’s compensation insurance, check us out at Northeast Metrowest Insurance today.