It’s usually a given that businesses will do their utmost to make sure that their employees have a safe environment in which to work in, but that cannot always prevent accidents from happening. Should something untoward happen to an employee while in the workplace as a direct result of health and safety negligence, then it’s vital that as an employer, you have a sound worker’s compensation policy, since this will help to protect you, your business and your workforce.
What is the purpose of workers compensation?
Workers compensation should come as part of your business’s employee benefits package and works on two fronts. Firstly, the compensation should protect your employees from the legal ramifications and complications that can result form an injury in the workplace. Secondly, it makes sure that the workers get the medical care and treatment that they require after suffering an accident, and that they will go on to receive a percentage of their regular income until they are declared fit to return to work.
The compensation provides employees with benefits irrespective of whose fault the accident was, and even if a worker should die while in the act of paid work for their employer, the insurance package will provide death benefits to any dependent members of their family.
How is American Workers Compensation Insurance structured?
By setting up self-insurance accounts for employees or purchasing commercial insurance policies, American employers always fully fund the workers compensation coverage. The compensation boards created by that state’s legislature, generally handle claims, and in a handful of states, claims can be taken to the courts directly. No two states have the same criteria for determining what type of injury, the claimant is suffering from, with most making a distinction between injuries that merely impair someone’s ability to function normally, and those that disable a person.
The system that is in place today is very similar to that which began back in the early part of the 20th century, but some recent laws have resulted in changes that require employers to make modifications to their businesses to make them safer and more accessible for disabled persons to be employed there.
The impact of workers compensation insurance on a business:
Not only does this compensation protect employees from the harmful and sometimes devastating effects that an accident at work can have on them, but it works hard to protect the business too. It is generally considered to be one of the most valuable insurance protections that a business can have, and while changes may be made to the compensation in the future, it will doubtless remain an integral part of any sound business insurance policy.