When employees sustain injuries at the workplace, workers’ compensation insurance recovers their lost wages and pays for their medical expenses. It is an essential form of coverage to obtain, and workers’ compensation programs are available to businesses of all kinds.
What Does Workers’ Compensation Insurance Cover?
The insurance covers any injuries or diseases that are contracted in the workplace. Specific areas of coverage include:
- Loss of limbs
- Medical treatment
- Lost wages
The insurance also covers employers who are sued by their employees for work-related injuries. In addition, if workers die from their injuries, their benefits are made payable to their dependents.
Who Needs Workers’ Compensation Insurance?
Only extremely small businesses (those that operate with only a few employees) can afford not to have insurance. There are different levels of coverage, which vary in cost. Low-risk businesses need only low-level coverage to be secure. On the other hand, more dangerous professions (construction, truck driving, logging) require a more comprehensive form of insurance.
Businesses also have the option to self-insure, or cover the costs flowing from work-related injuries themselves. Whether or not this is a suitable option depends on the nature of the business and the number of workers employed.
There are several different types of workers compensation programs, and by contacting an insurance company, businesses can look after their workforce and protect their financial assets.