Workers compensation insurance is required by U.S. state law for most employers, and this is solely to protect both employers and employees, should they happen to injure themselves in the workplace or fall sick while at work. But what is exactly is covered by this insurance?
What is covered by workers compensation insurance?
Work related illnesses or injuries are not unheard of in the workplace, and this type of insurance covers the expenses that can be incurred resulting from an employee accident, or when a staff member falls sick on the job. Typically, this type of insurance covers costs such as those of an ambulance or more long-term associated costs such as ongoing treatment, physical therapy or loss of earnings. Policies even cover the legal costs that can be incurred should an employee consider it their employers fault that they had an accident, perhaps due to negligence or health and safety concerns. We can look at this in more detail:
- Covering medical costs for immediate injurie and illnesses
Preventative measures should of course be taken by all companies to ensure that their employees are safe in the workplace, but not all such occurrences can be prevented, and as the saying goes, ‘accidents will happen’.
In the unfortunate event of an employee hurting themselves or falling sick while at work, the employer is the one usually held responsible for covering the cost, such as for visits to the emergency room, a ride in an ambulance and other associated medical bills.
However, to know whether your business is responsible for all injuries in the workplace, you can consult with a professional company that specializes in giving advice for employers and who will ensure that you know your legal rights and obligations, as a lot can depend upon the status of the employee in question and the industry that they are employed in.
- Wages lost
In most cases, employers are required to cover the cost of at least some of the employees missed wages while they are unable to work, and to help you cover the cost of taking on a replacement staff member temporarily, workers compensation will usually pay dividends. Seeking advice on exactly what policy will offer you the best coverage, is highly advisable before you jump in and purchase one.
- Ongoing care and treatment
Depending on the severity of the injury or illness, an employee may require ongoing care and treatment, or they may not be able to return to work at all. Unfortunately, as their employer, you may still be required to pay for the cost of their ongoing care, but the right policy will help you to cover those costs.
- The cost of a funeral and death benefits
Tragically, a small number of employees are killed in accidents at work, but workers compensation insurance can help you to cover the costs of a funeral and other associated expenses. If the industry that your business is in has a high risk of injury, then a good policy will be essential to help you attract new employees and retain those you already have, not to mention help you financially, as the business owner.
- Legal costs
It’s not uncommon for an employee to blame their employer for an accident or illness incurred while at work, and the legal costs associated with this can reach sky high proportions. Workers compensation insurance will help you cover the cost of a lawsuit, and if this is a concern for you as a business owner, don’t waste any time in ensuring that you have the right policy to get you the most coverage.
Workers compensation insurance is vital for all business owners, and is a legal requirement for most, so for the right coverage, seek professional guidance right away.