Workers compensation insurance is mandatory in most states if you have one or more employees (-). Workers comp provides valuable protection against accidents for both employers and employees. The following information will help you understand why workers compensation is important.
Protection for Employers
Workers compensation insurance protects workers against injuries they sustain on the job. Without this insurance,employers could be held liable for the cost of accidental injuries on their own.
If,for example,an employee fractured his leg due to an accident on a construction site,his employer could be held liable for paying his medical costs. If the same employee couldn’t return to work due to his injuries,the company may be obligated to cover lost wages as well.
Without workers comp,accidental injuries could cost companies tens of thousands of dollars out of pocket over the course of time. Employers could also face financial ruin if they were sued for damages.
Protection for Employees
Workers compensation covers medical costs of employees who have accidental injuries on the job. This saves them from having to pay these expenses out of pocket. In addition to paying medical expenses to cover the accident,workers comp covers ongoing medical care,lost wages (generally,up to two-thirds of a worker’s salary) and pays for funeral expenses if the accident leads to a worker’s demise.
Having insurance coverage gives workers greater security on the job as they don’t have to worry about accidental injuries depleting their finances. They also have the assurance of receiving some income to pay the bills while they are recuperating from an injury.
Companies with workers comp are more likely to make safety a priority in the work environment to reduce insurance costs. A safer work environment benefits both employers and employees.
These are just a few of the many reasons why workers compensation is important.