Workers Compensation Insurance

Workers’ Compensation is a contract between a business and an insurance company, where the insurer will pay for an employee’s medical costs, lost wages, permanent disability or death benefits that result from a workplace injury or illness. In most cases, it also protects a business against lawsuits filed by employees.

IS WORKERS’ COMPENSATION MANDATORY?

Yes. There are some exceptions, but even if it isn’t mandatory, a worker’s comp policy is heavily, HEAVILY recommended. If an employee were to injury themselves, workers’ comp can save your company from crumbling to the ground in a number of ways. 

• FINANCIAL CONSEQUENCES: without an insurance policy, out-of-pocket expenses for a severe injury could cause bankruptcy
• LEGAL CONSEQUENCES: without coverage, you lose certain types of common law defenses, which make it nearly impossible to win your case
• CRIMINAL FINES AND CHARGES: failure to comply with regulations could lead to hefty fines and even jail time.

WHAT DOES IT COVER?

A workers’ compensation policy will cover the majority of injuries from work-related duties, ranging from simple slip-and-fall accidents to repetitive motion injuries and even an illness or disease contracted at work.

Employee coverage will usually include the following:

• Medical bills and rehabilitation costs
• Weekly payments in place of missed wages
• Compensation for past, present and future economic loss due to disability

In the event of death, their family will usually receive the following:

• Compensation for funeral costs
• Legal fees (if the family seeks legal recourse)
• Death benefits