Workers Compensation Insurance Explained

Workers Compensation Insurance Explained

what is workers compensation insurance

As a business owner who hires employees, you need insurance to protect your staff and yourself. Don’t just sit there wondering: What is workers compensation insurance and why do I need it? It is important for you to fully understand why this asset is crucial for your business.

Why Do Businesses Need Insurance?

No matter how hard you work to reduce risk and prevent employees from getting hurt, accidents inevitably happen. When workers are injured on the job, your business is liable for the injury and any subsequent repercussions. Employee negligence, weather and other extenuating circumstances can certainly be disputed; however, you usually have to contribute some portion of assistance to help your employees recover.

What is Workers Compensation Insurance?

Workers compensation insurance covers the following types of expenses related to workplace injuries:

  • Lost wages
  • Medical treatment
  • Long-term physical therapy
  • Psychological therapy
  • State fees and penalties
  • Legal claims and court costs

Insurance also helps fund return-to-work programs and offset the costs of purchasing new equipment. If the injury is fatal or if your employees are unconscious for a period of time, insurance can help support their family members.

Check with your states insurance requirements for your business type. Find a reliable agent and purchase your plan as soon as possible to protect yourself against risk and financial loss.