Workers’ compensation is a mandatory type of insurance required by law in almost every state. Workers’ compensation insurance protects employees from injury or illness directly resulting from job-related duties. This type of insurance covers lost wages and medical expenses that result from illnesses or accidents on the job. Workers’ compensation does not just protect employees. It also protects businesses from being sued by employees for workplace conditions.
No matter the size of your company, big or small, if you have employees, you need workers’ compensation insurance. Before workers’ comp, employees injured on the job took legal action against their employers in order to seek financial reimbursement for medical bills and other inconveniences resulting from being injured on the job. In 1911, the first form of workers’ compensation was created in order to make sure employees received fair and efficient medical attention and financial rectification. Failure to meet workers’ compensation regulations will leave employer’s paying benefits out of pocket and paying penalty fees to the states.
Workers’ comp only covers injuries or illnesses that occur as a direct result of tasks and duties performed in the workplace. Commuting is considered an activity outside the scope of employment and thus is not covered by workers’ compensation. Injuries suffered outside of your usual workplace or office building may still give rise to a workers’ compensation claim. However, if you were injured while playing football with co workers, this would not be covered because you are not acting within the scope of employment. Injuries caused by fires, explosions, lifting heavy equipment or slipping on a wet surface or oily floor would all give rise to a workers’ compensation claim.
Don’t risk being uninsured! There are many different unique workers’ compensation policies. Consult with an insurance agent at Nickerson Insurance Services, Inc. to determine which policy is best for your business!