No matter what industry your company is in, there is still a chance an employee can injure themselves while on the job. Workers compensation insurance, also referred to as “workers comp,” protects your employees and your business in case of work-related accidents, illnesses, and even death.
Even if your employee has health insurance, you are responsible for specific costs if they suffer a job-related injury or illness. In addition, the worker is entitled to a percentage of their regular wages during the time they are unable to work due to their injury or illness. These costs are covered by workers compensation insurance. If you do not have insurance, you will have to pay these costs out of pocket.
Workers comp can protect your business and your employees by helping cover:
- Missed wages if your injured or ill worker needs time off from work while they recover.
- Medical expenses to treat your injured or ill employee.
- Vocational rehabilitation if your worker needs ongoing care due to a work-related injury or illness
- Death benefits such as funeral costs
Who Needs Workers Comp Insurance?
You need workers comp if:
- You are ready to hire your first employee (in some states)
- Your business has one or more full-time employees
- Your business has one or more part-time employees (in some states
Who needs Worker Compensation Insurance?
You need workers comp if:
- You are ready to hire your first employee (in some states)
- Your business has one or more full-time employees
- Your business has one or more part-time employees (in some states)
Workers Compensation Laws by State
Each state has its own respective workers compensation insurance laws. These laws can be different depending on the location of your business. You should make sure you know what your state requires for workers comp.
Each state sets its premium amounts and benefits based on its economy and the risks its businesses face. For example, Alaska has one of the highest average premiums in the country because they have so many lumberjacking businesses which is a high-risk occupation.
Your state is also responsible for deciding who sells and handles workers comp policies. This can be state-run agencies, private insurance companies, and/or the state itself.
Some states also have secondary injury funds which help cover disabled workers if they are injured on the job again. This makes it easier for employers to hire workers who have been injured before.
Say, for example, you run a shipping fulfillment warehouse and hire a former furniture delivery man who hurt his back on the job years ago and had a workers comp claim. His injury might make him more susceptible to reinjury, and if that happens, a secondary injury fund can help pay the costs. Without this fund, businesses may be hesitant to hire a worker like this because they fear they will be responsible for the back pain resurfacing.
What Does Workers Compensation Cover?
If your employee gets injured on the job, or while acting on your behalf, workers comp can help cover necessary costs. For example, if your employee is out in the field delivering products to a customer and sprains his back while lifting the product, medical costs, lost wages, and rehabilitation costs may be covered by your workers comp insurance.
According to the Bureau of Labor Statistics, 30% of all workers comp cases are sprains and strains which usually occur during heavy lifting. In most of these cases, it can take up to two weeks for an employee to be able to return to work and perform their normal duties. Slips and falls make up 27% of all workers comp claims.
Workers comp can also help cover injuries from work-related violence, terrorism, and natural disasters.
Injuries are not the only thing covered, however. Work-related illness may be covered as well. For example, if your employee works with certain harmful chemicals as part of their job and they become ill due to the exposure, this may be covered under a workers comp claim. To learn more about what is covered under workers comp, click here to contact an EasyWComp representative today.
What Does Workers Compensation Not Cover?
Depending on your state laws, workers comp plans usually will not cover the following:
- Injuries caused by a fight the employee caused
- An injury intentionally caused by your employee
- An injury which happens to an employee who is intoxicated
- The injury is strictly emotional and no physical trauma is present
- An injury which took place during your employee’s commute to and from work.
Workers comp does not cover lawsuits such as the following:
- Gross negligence
- Malicious intent
- Discrimination
- Failure to promote
- Wrongful termination
For cases like these, liability insurance can help cover your legal costs. If you are interested in getting more information about general liability insurance, professional liability insurance, or a business owner’s policy, email CIS@cpsgo.com.
How Does Workers Compensation Protect My Business?
Workers comp can help protect your business by:
- Providing benefits to employees with work-related injuries or illnesses
- Limiting your business’ liability in lawsuits for work-related injuries or illnesses
- Helping injured employees get back to work whether it be a new role or returning to their usual role.
It is important to take into consideration that some workers comp policies do not provide coverage for multiple states, or for workers who travel to different states. Workers compensation coverage is essential for each state where your employees work.
Does Workers comp protect me from lawsuits?
With workers compensation, injured or ill employees can receive compensation, but filing a workers comp claim means the employee is forfeiting their right to sue their employer. There are exceptions, however. Workers comp does not provide coverage if you intentionally harm an employee through the following:
- Assault
- Battery
- Defamation
- Fraud
- A tort injury, like emotional distress
No matter what type of business you run, workers compensation insurance is a great way to protect both your business and your employees. To get the coverage you need,
