Workers’ compensation, also known as workers’ comp, covers medical expenses and lost wages entailing injury or death of employees who become injured or ill while at work or because of work-related contingencies.
An employee will only be covered for such injuries or illnesses that are related to their job duties. Workers’ comp insurance is required by most states, though there may be exceptions.
Here’s what you need to know about the coverage provided by workers’ comp insurance and how it will benefit your business.
What Is Covered By Workers’ Comp Insurance?
1. Health Conditions/Illnesses
Workers’ comp insurance can help cover your business if an employee suffers an injury or comes down with an illness while on the job. If the employee is unable to work, this coverage provides part of the lost wages and hospital bills for treatment. The health benefits of this coverage include physical therapy, surgeries, and medications. Businesses carrying this coverage are well-protected for unforeseen circumstances where an employee requires financial assistance to help them get back to work.
If an employee is killed in a work-related accident, the workers’ compensation insurance helps provide financial benefits to the employee’s family, covering funeral expenses. If the death is not a direct result of the injuries suffered when carrying out work duties, the beneficiaries of the deceased would be entitled to the Permanent Partial Disability (PPD). The PPD is the compensation that the deceased would have been paid for the permanent nature of the injuries had he not died.
This coverage is highly beneficial to the employees of a business; however, the business owner stands to gain as well. It limits the possibility of being sued by a grieved employee for maltreatment or insecurity. It also helps cover part of the cost for emergencies. Workers’ comp insurance is mandated in most states, so purchasing is obeying state regulations.
Although workers’ compensation insurance is required for businesses with employees, buying this insurance provides other benefits besides following state regulations, which can help protect and ensure stability for your business.
How Will Workers’ Comp Insurance Benefit Your Business?
1. Provides Job Security that Helps Retain Top Talent
Job seekers look for companies that offer protection against injuries. Jobs are a form of financial security for many to promote independence and personal achievement. Employees will not settle for a job that disposes of them once they are unable to perform because of injuries suffered while carrying out work duties. A successful business is nothing without hardworking employees, and a lack of job security results in a lack of motivation to work. If an employer offers little to no coverage at all, the workers will be skeptical and unwilling to take the risk. If an employee accepts the job, they will keep their ears to the ground for better offers that include security. Having workers’ comp insurance will help to put your employees at ease.
2. Builds Your Business on the Foundation of Trust
Once trust has been established, the workforce can focus on attaining a common goal. Carrying this coverage policy lets your employees know that they can count on you when it matters most. Security brings peace of mind, which encourages workers to be more efficient and productive.
Workers’ comp policies also reward businesses that incorporate safety procedures and create safety committees through premium discounts. The discounts help businesses and insurance providers by lowering costs and providing a safe and better working environment for everyone.