What is Workers Compensation Insurance?
In general, the current Workers’ Compensation system represents a compromise between employers and employees regarding employment-related injuries or illnesses. Basically, employees relinquish their right to sue employers if they suffer some job-related injury or illness. In return, employers agree to provide state-mandated benefits if such injuries or illnesses occur. To ensure employers will have the money to pay these mandated benefits, most states require that employers demonstrate that they have the financial ability to pay any claims that may arise. Typically, this financial ability is demonstrated through the purchase of Workers’ Compensation insurance. I read that many businesses are being sued by their own employees for discrimination, wrongful termination, violations of the Disability Act, etc… I try to be careful, but what if one of my supervisors commits the violation or my file is not properly documented? What can I do? Your Business Liability coverage and your Workers C
Workers compensation insurance protects both the company and its employees. Companies are responsible for maintaining a safe workplace, but accidents still happen. Almost every state requires that businesses with a minimum of three to five employees (it’s different for each state) have workers compensation insurance. If an employee is hurt in the workplace or while working, even offsite, or becomes ill with a work-related sickness, workers compensation insurance provides the employee with costs for medical care and compensation for lost income; or death benefits to surviving family members. Workers compensation insurance pays the employee for these expenses, no matter who was at fault for the injury or illness. The insurance is also set up to protect the company. If an employee sues the company as a result of a work-related injury or illness, the insurance policy pays for the medical expenses, wages, and any legal expenses that may occur. Workers compensation is the only insurance that
