Insurance You business Can’t Operate Without
Workers’ compensation insurance (Worker’s Comp) plays a key role in helping your company’s employees recover from work-related injuries or illnesses. The underlying goal is to help them fully recover as fast as possible to help them get back to work. Many states require a company to carry worker’s compensation insurance as part of the process of hiring and retaining contracted employees.
What Does Workers’ Compensation Insurance Do?
There are several ways that workers’ compensation insurance helps business owners and employees. Most states and municipalities require you to carry workers’ comp insurance if you hire an employee. Though it typically isn’t required for in-house third-party independent contractors.
Benefits For Employees
Most lending institutions require you to carry homeowners insurance until the balance of the loan has been repaid. Though even if you own your home outright, you should still carry a homeowner’s insurance policy to protect you against all manner of problems. This includes:
- Covering the costs of their medical care
- Replacing a significant portion of their lost wages during their recovery time
- Provide disability benefits for severe injuries
- Provide death benefits
- Helping to pay for a funeral if they lose their life in a work-related accident
Benefits For Business Owners
Workers’ compensation insurance also has benefited small business owners by helping cover legal costs in the case of liability for an injury. Some employees who are injured on the job might seek damages or additional costs by suing the business owner or the commercial property owner if there were underlying safety or liability issues. By carrying workers’ comp insurance, you enjoy the peace of mind that comes with knowing your legal costs will be largely covered should the case go to litigation.
How Does Workers’ Compensation Insurance Work?
Workers’ compensation insurance protects you if your employees get injured on the job or sick from their work, by helping them recover and return to their job. Most policies are specifically designed to support small businesses.
Beyond just covering injuries or an ill employee’s treatment, a comprehensive workers’ comp insurance policy will also help with other things, like covering the costs to train your employees for new roles if they can’t return to their old roles.
A comprehensive worker’s compensation insurance policy can also provide long-term disability benefits if they can’t return to work due to a significant injury that occurred in the workplace.
How Much Does Workers’ Compensation Insurance Cost?
The average worker’s comp insurance policy costs between $35 to $50 per month. Though the cost of workers’ compensation insurance can vary from business to business. Especially if your business has higher risk exposure due to things like the presence of dangerous chemicals or the use of heavy machinery.
It’s important to note that the National Council on Compensation Insurance assigns different classification codes based on a worker’s type of work and the risk involved. If your business has a history of claims, it could increase your workers’ compensation insurance premiums.
Factors that can also affect the cost of workers’ compensation insurance include:
- The number of employees
- General payroll
- Industry-specific risks
- Type of work employees perform
- Claims history
Does Workers’ Compensation Insurance Provide Coverage For Fatal Accidents?
The majority of workers’ compensation policies include some level of death benefits. The policy is designed to help a deceased employee’s loved ones pay funeral and burial costs after a fatal workplace accident.
A comprehensive workers’ compensation package might also provide financial assistance for the deceased employee’s family.
Does Workers’ Compensation Cover Employees Who Contract COVID-19?
The level of coverage provided by workers’ compensation for COVID-19 infection depends on where the employee contracted the virus. Technically, workers’ comp insurance covers employees from on-the-job injuries and illnesses. Should an employee contract the coronavirus while working, then the worker’s comp policy should provide coverage.
