Workers' comp insurance reduces an employer’s risk of being sued by employees. In turn, workers’ comp provides financial protection and medical aid for workers who are injured on the work. Almost every state requires that companies with employees carry workers’ compensation coverage. Employers without coverage could face fines or prison time.
Workers’ comp insurance benefits both employers and employees. As a business owner, workers’ compensation insurance reduces your risk of a crippling financial loss in the case of a serious accident involving one of your team members. And your employees who are covered by workers’ comp can receive financial protection if harmed while performing their regular work duties.
The grand bargain
Workers’ compensation was established quite a century ago and has been mentioned because of the “grand bargain” between employers and workers. Ultimately, the workers’ compensation system may be a cooperative arrangement to scale back conflicts that will arise between businesses and employees when employees become injured in the work.
The “grand bargain” is this: regardless of who is liable for the workplace injury, the worker will receive workers’ comp benefits, and reciprocally, the business owner is going to be shielded from lawsuits associated with the injury.
Benefits of workers’ comp
If you’re an employer, there are three main ways of having workers’ comp insurance benefits you:
1. Workers’ comp protects your employees
If thanks to an event at work, your team members were injured, you’d want to be ready to look after them. Employees often cannot afford significant out-of-pocket for medical expenses and recoup lost wages. When covered by a workers’ compensation policy, employees who have sustained a work-related injury recover lost wages and other accommodations.
2. Workers’ comp protects you
If you are doing not carry workers’ compensation insurance for your business, employees or their families could sue in civil court for workplace injury or death. this example might be financially devastating for business owners who are uninsured and will even open them up to a criminal investigation. Running a business is often fast-paced and stressful. Business owners got to reduce their risks of complicated legal problems whenever possible. Investing in workers’ comp insurance is one important thanks to doing that.
3. It’s the law
Typically, business owners are productive members of society. They create jobs, contribute to the economy, and improve the workforce. When developing their business plans, most entrepreneurs don't envision themselves being prosecuted, fined, or maybe imprisoned for the work they hope to accomplish. However, this outcome may be a real possibility for business owners who don't suit workers’ comp laws. Each state has a workplace that manages its workers’ comp program, and nearly all states require workers to be covered. The U.S. Department of Labor maintains contacts for every state’s workers’ comp agency. To learn about the laws in your area, view the state workers’ compensation map, visit your state’s site, and follow its laws.
Ensuring your workers is a wise investment. If you’re a small business owner seeking coverage for your team, find a company that offers workers’ comp policies made just for small businesses. At Pie Insurance, we offer:
Typically, business owners are productive members of society. They create jobs, contribute to the economy, and improve the workforce. When developing their business plans, most entrepreneurs don't envision themselves being prosecuted, fined, or maybe imprisoned for the work they hope to accomplish. However, this outcome may be a real possibility for business owners who don't suit workers’ comp laws. Each state has a workplace that manages its workers’ comp program, and nearly all states require workers to be covered. The U.S. Department of Labor maintains contacts for every state’s workers’ comp agency. To learn about the laws in your area, view the state workers’ compensation map, visit your state’s site, and follow its laws.
• An easy and convenient online quote process
• A team of professionals who make workers’ comp easy to understand
• Specialization in insuring small businesses, saving you up to 30% on premiums
• Insurance rated A by A.M. Best
Thanks for reading! Please note that this content is meant for educational purposes only. As laws change regularly, you ought to ask your state legislation and/or an advisor for specific legal counsel.
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