What Is Covered Under Workers Compensation Insurance?

Posted: February 25, 2019

Did you know that an average of 99 people are fatally injured on the job each week? No one wants workplace injuries. They harm valuable employees and decrease morale, and they’re bad for business as well. Most companies put a lot of effort into implementing safety measures, but still, accidents are inevitable. While some industries are more dangerous than others, all of them have something in common: they’re required to provide workers compensation insurance. Discover why workers compensation is so important and what it typically covers.

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Benefits Of Workers Compensation Insurance

Although worker’s compensation insurance is designed to help employees who are injured on the job, it’s beneficial to the business owner as well. Serving as a safety net for both the employee and the business, workers compensation is a valuable investment that reduces risk in any type of company. See how both employees and owners can benefit:

Employees

Prior to the workers comp requirement for business owners, being injured on the job was even more stressful. In addition to dealing with the injury itself, employees also had the stress of asking their boss for compensation. As you might imagine, this arrangement rarely worked in the employee’s favor, and many would file lawsuits. By preventing this added stress and guaranteeing that funds will be available when they need it most, workers compensation is of great value to employees.

Business Owners

If the requirement to purchase worker’s compensation insurance for your employees seems like a burden, nothing could be further from the truth. Without it, any injury could result in a lawsuit that could cost you thousands. Rather than risking the financial health of your company, worker’s comp ensures employees they’ll be cared for, drastically reducing the chance of a lawsuit.

What Is Covered?

Worker’s compensation covers many circumstances in which employees have been injured. But it’s important to know exactly what it protects and what its limitations are. All of the following fees are covered by worker’s compensation insurance:

  • Medical Costs. Any expenses incurred while seeking treatment for the injury are covered. This includes all hospital and ambulance fees that are directly related to the injury. Note that this coverage isn’t limited to physical injuries. It includes illnesses as well. Any expenses due to doctor visits used for treating an illness are also covered.
  • Lost Wages. At least 38% of Americans live paycheck to paycheck. That alarming statistic shows the importance of getting paid, and having that money when you need it. One of the greatest benefits of worker’s compensation is that it covers the injured employee’s lost wages, allowing them to continue paying their personal bills without stress on their family.
  • Continued Care. Arguably the most remarkable aspect of worker’s comp is that it completely covers the employee’s medical expenses until they’re recovered. This means that a worker who fell off a ladder and broke their arm may take weeks or months to heal—but they’ll be covered the entire time.
  • Death Benefits, Including Funeral Expenses. Not every job carries a high risk of fatal injury, but some do, and worker’s compensation is vital in these industries. Unfortunately, some jobs are extremely dangerous, and occasionally, accidents can result in the death of an employee. When on-site injuries result in tragedy, worker’s compensation helps the victim’s family by covering funeral expenses and sometimes providing financial support for the dependents.
  • The Business Owner’s Legal Costs. Details may vary depending on where the accident occurred, but some plans include coverage for a business owner’s defense fees in court. For example, if an employee burns themselves on a fryer or slips on a floor, they may sue. Worker’s compensation can cover your legal fees so you don’t have to worry about them bankrupting your company.

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While not every type of insurance is required for entrepreneurs, any business owner with employees should have workers compensation coverage. It benefits the employee because they know they’ll have the help they need in case of an injury. As the business owner, it’s valuable because it prevents the majority of lawsuits from injured employees.

Request a quote today from King Street Agency.