How Workers’ Compensation Insurance Benefits Businesses?
Workers’ compensation insurance protects your company and employees against the risk of unexpected healthcare expenses, lost wages, and lawsuits from job-related illnesses or injuries. In addition to using this coverage to protect companies and employees, some state laws and business contracts may require businesses to buy a policy.
Thus, companies might need workers’ compensation for protection and to comply with legal requirements. The experienced business insurance agents at The Insurance Hub will work with you to find high-quality, affordable risk management partners that add value to your company. Find out how workers’ compensation insurance works, if your business needs this protection, and how to buy the right policy.
How Does Workers’ Compensation Insurance Protect You?
Laws generally require businesses to provide a reasonably safe workplace for employees. Safe worksites improve morale, increase retention, and boost reputations. At the same time, accidents may happen, and workers’ compensation policies protect businesses and workers when they do.
Workers’ compensation insurance protects businesses and employees in multiple ways. Primarily, companies should buy this coverage to shield employees and employers from bills, lost work, and legal claims because of work-related injuries and illnesses. Besides protecting your company against injury or illness claims, businesses may need workers’ compensation because:
Which Businesses Need Workers’ Compensation?
The Insurance Information Institute says that workers’ compensation serves two main functions. The coverage compensates employees for lost wages when they can’t work. A policy also ensures employees can access healthcare without high, out-of-pocket medical bills.
Even so, a primary reason most small businesses seek coverage includes remaining in compliance with local and state labor laws. According to the Workers’ Compensation Requirement Chart from The National Federation of Independent Businesses, almost all states have laws that require this coverage for businesses with more than a specified number of employees.
Some states may allow companies to replace having their own policy by self-ensuring or joining other small businesses in certain alternative programs. Sometimes, state laws don’t force businesses to buy workers’ compensation or pursue an alternative. Even if states don’t require protection, companies can still face unexpected expenses and liability claims when employees suffer work-related injuries or illnesses.
How to Compare and Buy Workers’ Compensation Insurance?
Business Owners Policies don’t come bundled with workers’ compensation insurance. Thus, businesses will need a separate policy to obtain protection against worksite illnesses or injuries. State laws differ. In most places, businesses can compare policies offered by private insurance companies.
Some places may also offer a state fund that serves as the sole coverage choice, an alternative to private policies, or the last resort for high-risk businesses. In competitive areas, insurance companies can vary considerably in rates, industries served, and additional services offered. Many business owners need help comparing policies to determine the best value. Contact the experienced, licensed business insurance agents at The Insurance Hub to discuss your business and explore the best opportunities. Like the high-quality insurance companies we work with, our agents will serve as a partner to help your business thrive and reduce risks.