Understanding what workers’ compensation insurance is and how it might help you in the event that an employee is injured on the job is crucial. Employees can be safeguarded if they sustain an injury at work, thanks to the coverage offered by this insurance policy. Almost all states mandate that companies with employees maintain workers’ compensation insurance. Those companies that don’t have this insurance risk fines or perhaps jail time.
To optimize your advantages, read on to learn how workers’ comp benefits you as an employer.
The Grand Bargain
It has been said that the establishment of workers’ compensation was the “grand bargain” between companies and employees. Workers’ compensation had been built as a cooperative mechanism to lessen conflicts that might develop between employers and workers in case workers get injured on the job. Regardless of who caused the workplace injury, the employee will receive workers’ compensation benefits, and in exchange, the employer will be shielded from claims arising from the injury due to any negligence.
Benefits of Workers’ Comp
There are three key advantages of having workers’ compensation insurance for employers:
Your Employees Are Protected with Workers’ Comp
Many times, workers are unable to cover considerable out-of-pocket medical costs and make up lost pay. Employees who suffer a work-related injury are compensated for lost income and other expenditures, such as medical care, under a workers’ compensation program.
Workers’ Comp Protects You as an Employer
Employees or their families could file a civil lawsuit against your company for workplace injury or death if you do not have workers’ compensation insurance coverage. Uninsured business owners risk becoming targets of a criminal investigation and suffering financially due to these circumstances. A business can be hectic and demanding to run. Owners of businesses should take every precaution to lessen the likelihood of complex legal issues. One basic way to accomplish this is by purchasing workers’ compensation insurance.
Mandated by Law
Most business owners don’t consider facing legal action, paying the penalty, or even going to jail while creating their business strategies. However, for business owners who disregard workers’ compensation regulations, this consequence is a genuine possibility. Nearly all jurisdictions require workers to be covered, and each state has an organization that oversees its workers’ compensation program. The U.S. Department of Labor keeps contact information for the workers’ compensation office in each state. You are required by federal and state law to have workers’ compensation insurance, even if you just have one employee.
Pittman Insurance Group, LLC Can Help!
It’s crucial that you understand what is covered by workers’ compensation insurance because it plays a significant role in the safety of your workplace. By doing so, you can be ready for any injury and get the assistance you require. Contact our experts here at Pittman Insurance Group, LLC to know more about workers’ compensation and allow us to help you get the most out of your coverage.