UPDATED: Jul 28, 2020
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Workers compensation is an expected benefit for employees in nearly all industries. This insurance guarantees that a worker will be given wage replacement and medical assistance if he or she is injured on the job. The reason for carrying this specialized type of liability insurance is to protect the company from lawsuits.
When an employee begins working for a company, they often agree to waive their right to sue the employer for injuries in exchange for inclusion in a workers compensation plan.
If you own any type of business with employees, workers compensation is a must-have. Policies for small businesses are available and can provide ample protection to your company and its workers for a reasonable rate.
Not only will this protect the safety of your workers and prevent lawsuits against the company, it also helps your small business stay in compliance with state laws surrounding workers’ rights.
What Does Workers Compensation Insurance Do?
The purpose of workers compensation insurance is to provide assistance to employees who are injured while performing duties associated with the job. For example, a delivery driver who is injured in an auto accident while making a delivery would qualify for workers compensation benefits.
Chronic conditions arising directly from the work environment, such as carpal tunnel syndrome, could also be covered. The workers compensation coverage will pay for reasonable medical expenses associated with the injury as well as missed pay while the worker recovers.
The insurance company and the employee’s doctor will need to confer to decide how much time away from work is reasonable, and workers compensation may not always pay for the full extent of an employee’s time away from work if an agreement cannot be found. All the same, workers compensation insurance provides valuable protection for the well-being of your employees.
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How Much Does Workers Comp Coverage Cost?
The exact cost of a workers compensation policy will depend on the size of your business, the number of workers it employs and the type of work they do. Higher-risk companies will often pay more for coverage than those with lower risks.
For example, if you own a construction business, you should be prepared to pay more for workers compensation than you would if your employees worked in an office setting.
Nearly every business in the US is required to have some form of workers comp if they have employees. The price for this coverage can vary dramatically, so anyone looking into it should consult multiple insurance companies for quotes.
Each organization will have different underwriting guidelines they use when determining a company’s risk profile, so getting multiple quotes can aid in finding the most comprehensive and affordable policy.