Understanding Workers Compensation

what is workers compensation insurance

Understanding Worker’s Compensation

Most people have a heart the term workers compensation, but what is worker’s compensation insurance all about? In short, worker’s compensation provides coverage for employees who are injured or fall ill while on the job.

Protection for Your Employees

When an employee is injured or becomes sick at work, workers compensation covers the costs associated with the incident. This means the insurance covers the following for an employee:

Medical expenses

Rehabilitation costs

Lost wages

In extreme cases, this insurance also provides death benefits if the injury or sickness is fatal. That means funeral expenses and payments to dependents can be covered, too. Certain situations, like a staged or intentional injury, are not covered.

Protection for Your Business

In terms of your business, worker’s compensation can be valuable. When an employee is injured or becomes ill due to a work-related situation, the business shoulders the blame. Having workers compensation insurance as part of your policy means your business is protected from lawsuits. It also covers the costs of medical bills or lost wages, so the company itself does not lose money. Lastly, this type of insurance ensures your company complies with state laws to operate legally.

So, what is workers compensation insurance? Its protection for your employees and your business in the event a worker becomes injured or ill and is a vital part of your business insurance plan.