Workers Compensation Insurance Coverage
Workers Compensation Insurance is designed specifically for employee injuries sustained on the job. As a protection for employees, most states require that employers carry some form of Workers Compensation Insurance.
In most states, if you have employees, you are required to carry Workers Compensation coverage. In non-mandatory states, it can be a good idea, particularly if you have many employees, or if they are engaged in hazardous activities.
Why Does my business need Workers Compensation?
Employers have a legal responsibility to their employees to make the workplace safe. However, accidents happen even when reasonable safety measures are taken.
To protect employers from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income to employees hurt in workplace accidents, in almost every state, businesses are required to buy workers compensation insurance. Workers compensation insurance covers workers injured on the job, whether they’re hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.
Employers have Workers Compensation requirements
Workers compensation provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitation services. It also provides death benefits to surviving spouses and dependents. Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. Workers compensation insurance must be bought as a separate policy. Although in-home business and business owner’s policies (BOPs) are sold as package policies, they don’t include coverage for workers’ injuries.