If you have a small business, you might wonder about workers’ compensation insurance. It’s one of the coverages that comes up a lot when business insurance becomes the topic of conversation. What’s the big deal about workers’ comp insurance? Why do you as a small business need workers’ compensation insurance? We’re going to explain what workers’ comp does and explain why it’s so important for small businesses to have it.
What does workers’ compensation do?
1. Workers’ comp. covers your employees’ medical expenses if they are injured on the job.
Okay, so what happens if one of your employees gets hurt on the job in a work-related accident? They could end up needing some extensive medical treatment. And medical bills can get really expensive really fast. With workers’ compensation, they can be covered for the costs of their medical treatment and rehabilitation. That way the employee won’t have to worry about how they’ll pay for the treatment they need and they can focus on getting better and recovering. And you can rest assured that your employee will get the care they need.
2. Workers’ comp can reimburse the employee for their lost wages.
Workers’ compensation does more than help cover the employee’s medical bills. It can also reimburse the employee for a portion of their lost wages for as long as they’re authorized, medically speaking, to take time off work. This is also really important for your employees, as they’ll still have income coming in even though they’re unable to work. So, that’s another thing to know about workers’ comp and why it’s so important. If an employee is injured on the job, they’ll be able to take the time they need to recover, as per the doctor’s recommendation. Again, they can just focus on getting better.
3. Workers’ comp can provide disability benefits.
Some injuries may leave an employee either temporarily or permanently disabled. If that is the case, workers’ comp can help. It pays the claim by looking at the severity and permanence of the disability. So, that’s another way in which workers’ comp can help your employees if they’re hurt on the job.
4. State law may require you to carry it.
So, there’s a lot of history behind workers’ comp. The reason workers’ comp came to be is because as the workforce grew in the 1800s, so did the number of workplace accidents. And at that time, a worker had little choice but to sue their employer if they wanted to get compensation for the injury. That’s why workers’ comp systems came to be. Now, each state has its own laws and particular system, but by 1949 pretty much every state had some sort of system. How it works is that the employer or the state provides compensation for the cost of the employee’s medical care, but the employee gives up their right to sue the employer. In every state (well, except Texas) it’s mandatory for employers who meet certain criteria to carry workers’ comp.
And that’s another reason why you need to carry workers’ compensation – it very well may be required by your State’s laws.
5. Workers’ compensation can provide death benefits.
No employer wants to think about what could happen if one of their employees were to get hurt on the job. It’s even more horrifying and scary to think about what could happen if an employee died on the job. Workers’ comp can provide death benefits to an employee’s family if they are killed on the job. Like we said, it’s a terrifying what-if that no employer wants to think about, but workers’ comp is prepared for such a possibility.
How to manage workers’ comp rates.
Even though you may be legally required to have workers’ compensation, you might be apprehensive about how much that’s going to cost. There are a few things you can do to reduce your workers’ comp premium:
- Train all employees on safety and make sure that they are clear on how to do their jobs as safely as possible.
- Make sure all employees know to report injuries or accidents ASAP.
- Have a return-to-work program in which employees work on modified tasks that they’re able to do while they recover.
- Do investigations of any injuries so that you can take steps to prevent them from happening in the future.
So, that’s why workers’ comp is a big deal and why you may need to carry it for your business. Not sure how to go about getting the workers’ comp insurance you need? Want to explore some different workers’ comp options? No worries – our team of agents can help you get the coverage you need. All you have to do is fill out our online form, give us a call, or message us on LiveChat.