Workers' compensation insurance, sometimes called workman’s compensation
insurance, workers’ liability insurance or workers’ comp insurance,
covers your employees’ medical expenses and at least some portion of
their lost wages if they are injured on the job.
How does workers’ compensation insurance
protect your business?
Most states require companies to purchase
workers' compensation insurance for their employees. A few
states have “pools” of insurance that is available
for you to purchase, but in most states, companies must find
private workers’ compensation policies.
Because workers’ comp insurance is
mandated by law, small-business owners often think that it
is just one more overhead expense that provides little benefit.
But good workers' compensation insurance is actually an affordable
benefit that protects both you and your employees.
Following are the optional parts of workers’ comp
insurance policies that have an impact on the cost and value
of the coverage for you and your employees:
Employer's Liability coverage, protects
your company should an employee claim that his or her injury
or illness was caused by your company's negligence or failure
to provide a safe workplace.
- In the employers' liability section, or "part two" coverage,
your legal expenses would be covered if an employee makes
an inappropriate claim of work-related illnesses or injuries.
While this section is almost always included in workman’s
compensation insurance, you can choose the amount of
liability coverage in this section.
- Coverage for employees who are injured in states outside
those where your business normally operates.
- Coverage for various types of injuries and illnesses.
The mandated part of this section depends on the state
where your business is located, but you should be aware
of what is and is not covered.
- Coverage for funeral expenses and financial support
- Reimbursement percentages for lost wages.
Employer's Liability coverage may be described
in your contract in this way: "Workers' Compensation
and Employer's Liability Insurance shall be provided as required
by law or regulation (statutory requirements). Employer's
Liability insurance shall be provided in amounts not less
than $500,000 per accident for bodily injury by accident;
$500,000 policy limit by disease; and $500,000 per employee
for bodily injury by disease."
The cost of workers’ comp insurance
can vary widely depending on these options, so if you are
comparing premium costs, you need to be aware of these variables.
Contact Us today
to obtain the proper applications for more information
on the availability in your state