n 2017, nearly 2.8 million non-fatal work-related injuries and illnesses were reported in the U.S.
As a business owner, you definitely want the best for your business, that is, including your employees.
While shopping for business insurance coverage, however, workers’ compensation coverage doesn’t come as a priority to most business owners.
Unfortunately, workers’ compensation insurance is considered as the most important business insurance policy for a business.
So what really is workman’s comp insurance? And why is it important for your business?
Thus, read on to understand what exactly worker’s compensation insurance is and the 10- essential benefits that come with having it:
What is Workers’ Compensation?
As an employer, it’s required of you to have proper workplace safety measures in place. Sadly, even with the best workplace safety measures, accidents will still happen.
What happens when your employee is injured at work or becomes ill due to work-related conditions?
Well, that’s when workman’s compensation insurance comes into the equation.
Workman’s comp insurance is a form of insurance obtained by businesses to cover the employees’ lost wages and medical costs resulting from work-related injuries and illnesses.
Workman’s compensation comes into effect despite who is at fault for the injury or illness, whether it’s the employer, the employee, co-workers, or even the customers.
By accepting these monetary benefits, limits employees from suing you for those injuries.
Not every employer needs to have workman’s compensation insurance. State laws vary, and an employer’s responsibility to offer coverage depends on various factors.
These factors include the type of business, number of employees, and the type of work.
There’re also certain types of works some states may exclude, for instance, casual workers, and domestic employees.
If you’re the sole owner, a workers’ compensation may be optional until you employ workers who aren’t also proprietors.
Consult a workman’s compensation specialist to verify whether you are subject to these requirements.
Eligibility for Workman’s Comp Insurance
Acquiring an injury doesn’t always mean that an employee is eligible for workman’s compensation.
Here are some of the criteria used in determining whether an employee qualifies for worker’s compensation:
- The employer has workers compensation insurance
- The injury or disability sustained is work-related
- Employees must submit worker’s compensation claim within the defined timeline allowed
- The employee dies on the job
Workers’ compensation offers many benefits to both the employer and employee. Below is a list of 10 essential benefits of workman’s comp insurance:
1. Meeting Legal Requirement for Your Business
Purchasing workers compensation ensures that your business complies with your specific states’ laws. Thus it’s paramount to familiarize yourself with your state’s laws, particularly, ones that pertain to your type of business.
2. Protected From Injury-related Lawsuits
Workers’ compensation is meant to protect you and your business from injury-related lawsuits.
Providing coverage to your employees prevents them from filing lawsuits against you if they’re injured on the job.
Once employees receive compensation for work-related injury or illness, they’re deprived of their right to seek damages from the company in court.
3. Injured Workmen Can Be Retrained More Quickly
Employer’s insurance also covers any training an employee may need before returning to work.
Such assistance is offered through training, vocational counseling, education, and transferable skills analysis.
If a worker can’t resume their position in your company, they get the necessary help with both training and getting a job that suits their abilities.
4. Funeral costs and death benefits
In some states, if an employee dies as a result of a work-related injury, death benefits are paid to the workman’s family.
This helps to cover funeral and burial expenses. The compensation coverage guarantees that your employee’s family gets financial help for their loss.
Most states offer vocational rehabilitation to employees who are not in a position to resume their previous work because of a work-related injury.
For an on-the-job mental injury, workers comp ensures that such an employee gets the necessary psychological rehabilitation.
6. Employer’s Duty Not to Retaliate
Additionally, workers’ compensation laws help to protect employees with work-related injuries from employers who discriminate against them for exercising their rights.
Workman’s comp laws allow workers to file suits against the employers for the tort of retaliatory discharge.
7. Temporary Disability Benefits
Temporary disability benefits are meant to cover a part of the wages your workers lose while they’re disabled for a work-related injury.
The amounts given to workers for disabilities vary depending on the specific state.
The amount given in state benefits, however, mostly depends on the nature of the disability and the average weekly wages of the employee before the injury.
There’re also cases where a work injury or illness sustained is so severe that the worker may require ongoing care from specialists. Worker’s comp ensures that such costs are fully covered even if the employee never resumes to work.
9. Social Security Benefits
A worker who suffers a severe disability, either permanently or continually for 12 months, due to a work-related injury is eligible for social security benefits every month.
Seek professional assistance from your state’s social security administration to know whether you’re eligible for the compensation.
10. Permanent Disability Benefits
If your worker fails to recover from job injuries and ends up with a lasting disability that leads to an inability to earn, they are entitled to permanent disability benefits.
The same case applies to even those who are later able to resume their jobs.
PD benefits, however, are limited as they don’t cover any income loss experienced unrelated to your worker’s ability to work.
Ready To Offer Worker’s Comp To Your Employees?
As one of the essential coverages for your business, workman’s comp insurance ensures both your business and your employees are protected.
Purchasing this coverage makes sure your business’ finances aren’t drained in covering damage costs for a work-related injury as the law dictates.
Visit our website today for a free workman’s comp quote for your company.