Worker’s compensation insurance is a neat fallback in case your employees get injured on the job or have a work-related illness. It will give them – and you, their employer – the benefits and protection you both need in case anything untoward happens at work.
How Does Workers Compensation Protect Your Employees and Affect You?
How exactly does it protect your employees, and what protection does worker’s compensation afford them? And most importantly, how does it affect their employer – you? Read on to find out.
What Is Workers Compensation?
Worker’s compensation insurance, also known as worker’s compensation, worker’s comp, or workman’s comp, is a type of insurance that gives your employees the benefits they may need in case they ever get any work-related injuries or acquire any illnesses related to their job.
It protects them – and you – by helping cover for medical attention and procedures, and even replace wages from days lost to illness or injury.
It can also help your employee get back to their feet by facilitating their return to the job, or the finding of transitional work.
In more extreme cases, worker’s compensation can also give them compensation for severe or permanent injuries, as well as survivor’s benefits.
In many states, worker’s compensation is required of companies by law. However, requirements may vary from state to state.
How Does It Work?
The employer selects and pays for a worker’s compensation policy from their insurance provider of choice to cover their employees.
Should any of them fall sick from work-related causes or get injured while on the clock, they must report it to you within the prescribed time period so you can file a claim, as well as report to the Occupational Safety and Health Administration.
The Worker’s Compensation Board or a similar agency in your locality will process the claim and then direct the insurance provider to award benefits and payments to the affected employee as dictated by the nature of the injury or illness, state requirements, and the specifications of the policy.
It is important that you choose a reputable insurance provider with a good track record. Some companies may make the process burdensome, or be downright unfair in reimbursement.
Should you ever encounter this difficulty, it would be wise to consider seeking the advice of a legal professional on how to report a workplace injury.
How Does It Affect The Employer?
Purchasing a workman’s comp policy might seem like a frivolous expense at first, but a closer look at how it may help you down the line will change that perspective. Not only does worker’s compensation protect and benefit the employee, but it protects and benefits you and your business, too.
As injuries and work-related illnesses can arise in any type of occupation environment, be it in physically demanding blue-collar jobs or sedentary white-collar work, having a worker’s compensation insurance in place will save you from spending out of pocket for any medical expenses, benefits, and payments your employees might require should anything unfortunate happen.
Think of it as a safety net, not just for your employees, but also for you.
Conclusion
Worker’s compensation is an important investment for you and your company.
Not only does it protect your employees and assure them of benefits and payments should anything untoward happen to them while at work, but it also helps you by protecting you from unwanted expenses for their medical treatment, compensation, and benefits if there were no policy in place.
As an employer, it is in your best interests to have a reliable worker’s compensation insurance policy in place for your employee’s welfare and your peace of mind.
Does your company have worker’s compensation insurance? Tell us about it in the comments.
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