Every business owner must understand what workers’ compensation is and what it means to their business and how to go about it. There are many things to consider when running a business, and one of the most important is protecting your employees. Workers’ compensation insurance protects your business and employees when they fall victim to a work-related injury or illness.
What is Workers’ Compensation?
Workers’ compensation is a structured system in the United States and several other countries that offers benefits to employees who suffer an injury or have an illness at work. State governments usually administer the program as part of their social welfare programs.
In the U.S., employers in most states typically require workers’ compensation, meaning business owners must provide coverage for their employees. Employers pay into the system through insurance premiums; employees have coverage if injured on the job.
It can include medical benefits and wage replacement coverage, especially if the employee is driving for work-related purposes.
Why Does Your Business Need It?
Accidents happen no matter how well you train your employees and how cautious you are. When they do, you want to make sure your business is protected. That’s where workers’ compensation comes in.
What you should know about workers’ compensation is that most states require it. Nonetheless, even if it’s not needed, it’s a good idea to have it. Workers’ compensation can help you avoid lawsuits and protect your business financially if an employee suffers an injury on the job.
Moreover, it’s also ethical to have workers’ compensation insurance. After all, you handle your employees’ safety while they’re on the job. If something happens to them, it’s only fitting that you help cover the costs associated with their injury or illness.
Who Should Be Covered with Workers’ Compensation Insurance?
Full-time employees should have workers’ compensation insurance coverage, and part-time and seasonal employees. It’s also important to note that certain types of workers are exempt from coverage in some states.
For example, independent contractors are not considered employees in California and therefore do not automatically receive coverage under this policy. However, there are some exceptions to this rule—if an independent contractor is injured while working on your behalf, you may still be held liable.
What are Valid Claims?
Four industrial injuries receive coverage under workers’ compensation insurance policies. The first is when someone suffers an injury because of an accident. Likewise, accidents could include slips, trips, falls, and incorrect lifting. People can hurt themselves through repetitive motion. It occurs when someone performs the same task repetitively, which causes strain on muscles, tendons, and joints.
Occupational diseases play a role in valid workers’ compensation claims. Subsequently, it could include conditions like carpal tunnel syndrome and hearing loss caused by exposure to workplace hazards. Stress is the last industrial injury that the policy covers. Ultimately, it results from a job that puts the claimant’s life in danger or gives them unusually high amounts of stress.
Conversely, some claims would be invalid. The claim would not be valid if the claimant suffered an injury outside of work or suffered the ailment while intoxicated. Likewise, the claim is also invalid if the claimant willingly disobeyed company safety rules or suffered harm because of an act of aggression or violence.
It’s important to get workers’ compensation insurance for your business, including the best commercial insurance. Even if you have just a few employees, you still have to think about what happens if someone gets hurt on the job.
About RBC Insurance Associates
As an independent insurance agency, our clients’ interests come first at RBC Insurance Associates. Our goal is to provide a comprehensive, tailored insurance program that addresses your needs. We accomplish this by working with some of the finest insurance companies in the industry with the highest ratings. We will negotiate on your behalf to get the best policy terms and pricing for your program.
Here is just a sample of our leading insurance carriers.
Tags: RBC Insurance, Workers' Compensation, Workers' Compensation Insurance