For employers, offering workers’ compensation programs to their employees has many advantages. The primary benefit includes avoiding legal issues that can come with heavy financial costs due to any fines that may occur.
At the same time, it provides coverage for employees who may be impacted by a serious accident on the job. By covering medical treatments, rehabilitation programs, and loss of wages, they can go back to work as soon as they are recovered. Furthermore, it is a legal requirement by the majority of states.
In the event that an employee suffers from a serious illness or accident due to an event that occurs at work, workers’ compensation can cover expensive medical costs related to surgeries, prescription medicine, ongoing care, and more.
In addition, those who are unable to work during this period can receive their lost wages under their policy instead of employers having to pay out of pocket.
If a business doesn’t provide workers’ compensation insurance for their employees, it is possible that employees or their families may sue after a severe workplace injury or even death.
However, with an insurance policy in place, most employers are immune from personal injury lawsuits in the majority of circumstances. Having workers’ compensation in place can reduce or eliminate court settlement fees and other related fees.
For business owners who are on the fence when it comes to offering workers’ compensation, one of the most compelling reasons for its purchase is its legal necessity. For those who don’t comply with this law governing most states, prosecution, legal fines, and even imprisonments are a possibility.
Some states that carry particular severe fines include California, Illinois, New York, and Pennsylvania. To learn about more the laws in your area, you can view the state workers’ compensation map by the Department of Labor.
At the end of the day, providing workers’ compensation for your employees has significant financial, legal, and practical benefits in the long term for the stability and future of your company.
For a more detailed look at what workers’ compensation insurance covers, feel free to check out our detailed guide. Lastly, if you have any questions about worker’s compensation that we haven’t covered yet, feel free to reach out to us at Assured Standard for more information.
Marie Brown is an insurance underwriter. She completed her Economics degree at the Massachusetts Institute of Technology. With her expertise and dedication, she ensures her clients’ insurance applications are approved.