Workers’ compensation insurance has been in practice in the US since 1949. Most states have mandated it for enterprises as preventive measures to protect both the workforce and business.
What Is Workers’ Compensation Insurance?
It pays for the medical costs of employees who suffered work-related accidents or injuries. You may consider getting one if you wish to protect your business from unnecessary expenses while also creating a safe working environment for your employees.
If an employee gets injured or becomes sick while working or due to a work-related event, they will receive a portion of lost income and their medical payments.
What Is Covered in Workers’ Compensation Insurance?
- Accidents or personal injury while on the job
- Illnesses resulting from occupational hazards
- Rehabilitation costs for stress injury resulting from repetitive movement
- Permanent or partial disability
- Family/dependent benefits due to death during service
Here’s what it does not cover:
- Injuries caused during non-work hours/personal time or due to violation of company policies
- Employee negligence resulting in the accident/injury, which includes self-harm
- Permanent and stationary injuries with no scope for further improvement
Why Should You Get One?
Check your local regulations and state laws to determine whether buying workers’ compensation insurance is mandatory for your business. It is good to invest in one as it covers your business and employees.
For businesses, it helps overcome the fear of being sued. This insurance will cover any costs related to compensating employees, including their treatment bills or even court fees. It is particularly useful for businesses associated with occupational hazards.
On the other hand, employees know that they are protected if they fall ill or get injured while at work, and the related loss of wages and medical bills are covered. This results in increased productivity and efficiency.
Workers’ compensation insurance is essential for your business as well as employees. Are you looking for the best and affordable insurance plans? Contact the experts at The Schwab Agency in Colleyville, Texas, for all your insurance needs. We look forward to getting you covered.