Beginning or growing a business involves many moving parts. An important piece you won’t want to forget is workers’ compensation insurance. Required by most states, workers’ compensation protects the employer and the employee during medical crises. If you’re not sure what you need to know about workers’ compensation, keep reading for a quick dive into what will become an important piece of your company’s policy.
What To Know About Workers’ Compensation
Workers’ compensation insurance provides benefits for job-related injuries to cover medical expenses and wage loss. Correctly training staff for their job is essential because the consequences of electrocution or a traffic accident, for example, can be the loss of a valuable employee. Other common workplace injuries to avoid include:
- Repetitive motion injuries
- Slips and falls
- Cuts, scrapes, and burns
- Being hit by a falling object
- Exposure to chemicals or other toxins
- Muscle strain
- Workers’ Compensation by State
Although most states require companies to have workers’ compensation insurance no matter their size, each state has different mandates. States decide who workers’ compensation covers and how much coverage an individual receives. Some states include independent contractors and freelancers as part of the insurance program while other states do not, so be aware of the workers’ compensation laws in your state.
Protect Your Business
Employees relent the right to sue their employers to benefit from workers’ compensation. The insurance program protects the employer while providing aid for the injured worker. However, workers’ compensation does not prevent employees from suing third parties that may have caused their injuries.
No-Fault Workers’ Compensation
Accidents happen every day. Even the most seasoned and well-trained employee can make a mistake. Workers’ compensation covers workplace injuries regardless of fault. Employees can’t go around purposefully injuring themselves, but it’s understood that human error will occur. Insurance also covers injuries that occur outside the workplace if the employee was performing duties for the company—this typically covers off-site, contract, work-from-home, and freelance situations.
Regardless of the size or the type of business you operate, you likely need a workers’ compensation program in place. If you’re not sure what you need to know about workers’ compensation, check your state’s laws to see what you need to do for your company.
