Worker’s Compensation insurance coverage plans are held by an employer to protect employees and themselves in case ofillnesses and injuries related to the job. The Worker’s compensation insurance is set out to duly compensate employeesand eliminate the liability risk for employers. They are required in most states for businesses with one or more employees. In some states they are required for at least 3-5 employees and only state does not require the insurance.
This type of insurance policy is a win-win for both employersand their employees. First, the employees get compensation for injuries or illnesses inflicted from the job. They don’t have to worry about medical expenses or lost income. The insurance company will take care of the bills. While for the employers, they don’t have to worry about the risk of being sued by theirstaff.
Most small and medium scale business owners get cold feet when it comes to buying workers’ compensation insurance, probably because their cash flow is small, or they feel their business is not prone to this type of risk. Nevertheless, business is business; we never can tell when something wrong is going to happen.
Some businesses like construction companies expose their staff to more risk than others, while small retail outlets seem less likely to be exposed to this type of risk. However, the size or type of business doesn’t determine whether or not your business needs workers compensation insurance. Whether you own a construction firm, a retail outlet, or any other type of business, as long as you have employees working for you, you need to ensure this policy is in place.
There are numerous benefits why every business owner needs to ensure its staff with a worker’s compensation insurance policy. However, the four primary benefits of this type of insurance coverage are:
It Covers Employees Medical Expenses
If an employee gets sick or injured while carrying out his duty, workers’ compensation insurance will cover expenses incurred as a result of treatment, all medical bills, as long as there are no complications in the policy, disability and even death benefits are covered. Loss of wages while being away from work.
Loss of wages
Workers who are injured or get sick from work related causes, may not be able to carry out their regular jobs while recovering. A Worker’s Compensation will cover loss of wages to until the worker is able to return to work and allow the employer to hire temporary staff in the meantime with no additional cost.
Covers Cost Treatment when an Accident Occurs
It’s not uncommon to see staff fall from a construction site or get injured by stray work tools. Such accidents can be disastrous and even leave the employee handicapped for life. A worker’s compensation insurance plan pays for full treatment including therapy and rehabilitation of the employee.
Small businesses are also exposed to accidents. It could be a fire outbreak or electric shock from basic appliances. When such accidents occur, both employees and employers will not have to worry about medical expenses because the insurance company will take charge of the bills.
Avoids Legal Battles
There is a big chance that an employee will sue the employer if there’s an injury without proper compensation. Legal battles are very expensive, and they end up damaging the relationship between the employer and the employee. However, if there’s already a worker’s compensation insurance in place, the employee will be adequately compensated and there won’t be a need for a court brawl.
I like to think of worker’s compensation insurance as a basic requirement for every business because this coverage helps maintain the relationship of both employees and employers.