What is Workers Compensation Insurance?
Workers compensation insurance, also referred to as workers comp insurance, helps provide benefits to employees who are injured or become ill because of their job. It’s generally referred to as a no-fault system, as employees do not have to prove that their employer was negligent to receive benefits. This coverage is generally required to be held by the business owner if they have employees.
What does Workers Compensation Insurance Cover?
Workers’ compensation helps your employees recover from work-related injuries or illnesses. It can help protect your business if your workers:
- Hurt themselves lifting a heavy box in the office
- Develop carpal tunnel syndrome from poor typing habits
This policy can also help pay to train your employees for new roles if they can’t return to their old job. In the event the injury was so severe that they couldn’t return to work at all, workers’ compensation coverage can help provide long-term disability benefits.
Workers’ compensation insurance typically covers the following benefits:
- Medical care and treatment
- Replacement of lost wages
- Disability & death benefits
Who Needs Workers Compensation Insurance?
In the United States, most states require employers to provide workers’ compensation insurance to their employees. There are a few exceptions, such as employers with very few employees or states that simply don’t require it, such as Texas[1].
How Much Does Workers Compensation Insurance Cost?
The cost of worker’s compensation insurance can vary depending on many factors. These include company payroll, the industry the business is in, the number of employees, and more.
According to Hartford, a leading provider of worker’s compensation insurance, their customers pay an average of $70 per month for coverage[2].
Why Do You Need Workers Compensation Insurance?
There are many reasons why you need worker’s compensation insurance. Some of the most important reasons include:
- Protect your employees: Worker’s compensation insurance can help to ensure that your employees receive the medical care and financial assistance they need if they are injured or become ill on the job.
- Protect your business: Having worker’s compensation insurance can help to protect your business from financial losses if an employee is injured or becomes ill on the job.
- Comply with the law: In most states, employers are required to provide worker’s compensation insurance to their employees. Failing to do so can result in fines and potentially other penalties.
Worker’s compensation insurance is an important type of insurance for employers. It can help to protect your employees, your business, and yourself from financial losses if an employee is injured or becomes ill on the job.
Here are some additional tips for understanding worker’s compensation insurance:
- Talk to an insurance expert to better understand the coverage relative to your specific needs.
- Read your policy carefully to understand the coverages and exclusions and make sure you are familiar with the service and claims process.
- Ensure that proper documentation is kept including all injuries and illnesses that occur in your workplace.
Disclaimer
At BuyLiability.com, we spend hours researching Small Business Insurance companies and marketplaces to help create useful, unbiased product reviews for Small Business Owners like you. In doing so, we make every effort to keep the most updated and accurate information on our website, but we make no warranties as to the accuracy, timeliness, and completeness of the information referenced within. Accordingly, we are not liable in any manner for any direct, indirect, or consequential damages arising out of the access, use, or inability to use our website or any third-party site linked to our site. We have no control over third-party websites that we link to on our site and as a result, are not liable for third-party websites that we link to on our site and are not responsible for the content, its accuracy, function, or legality of the actual websites.
From time to time, we receive advertising revenue from companies seeking to advertise on our website; those payments, however, do not influence our reviews but rather help us keep the lights on. Links that go to third-party websites and quote applications are referred to as affiliate links. When you click one of those links and fill out an application to get a quote, we receive a small commission, so we can keep this site running without requiring a paid subscription fee from our readers.