Special education articles, higher education

The ins and outs of workers compensation insurance

Posted on Aug 18, 2017 in Edu

One thing small businesses are concerned about is workplace safety issues. More and more accidents take place and, even if they are small, they can lead to unfortunate results such as mutilation and even death. Since employees are the most important asset a business can have, it’s essential for small business owners like yourself to take out workers compensation insurance. This type of insurance provides financial protection in the event of a loss resulted from workers’ injury or illness.

The issue is that employers see workers’ compensation insurance as an expense and not a necessity. They actually believe that accidents occur only in high-risk industries. This isn’t true. You can easily find yourself dealing with workplace safety issues. Buying workers’ compensation insurance is something you absolutely need to do. Before going shopping for an insurance policy, it’s worth learning more about this kind of contract. These are the workings of workers’ compensation insurance.

Employers are required to carry workers’ compensation insurance

You may be tempted to think that you don’t need to carry workers’ compensation insurance. Did you know that most states in the U.S. require employers to purchase insurance and help their employees cover the costs associated with workplace injuries? Yes, no matter if you have five employees or twenty employees, you have to carry insurance and provide workers who suffer injuries or maladies specific benefits. So, what are you waiting for?

There’s much chance that businesses will get injured  

Workplace injuries are way too common, unfortunately. If employees don’t get killed on the job, they at least suffer serious injuries. As an employer, it’s your responsibility to help employees during the recovery phase, taking care of medical bills and other kinds of expenses, even if they were at fault. Contrary to popular belief, your responsibility doesn’t end when the paychecks are paid. You have to provide workers’ compensation insurance. This coverage will protect your employees and save you from a lawsuit. Keep in mind that workplace accidents do happen, no matter if the environment is safe or not.   

A safer workplace leads to savings in workers’ compensation insurance

Providing employees workers’ compensation insurance isn’t enough. What you have to do is create a safer working environment. This implies carrying out regular evaluations, developing safe practices, and train workers. What is the benefit of doing all this? You’ll see your insurance rates go down. By making the workplace safer, you’ll be able to lower your rates and even get reduction in costs. This basically means that your efforts will not go unnoticed.

Who pays workers’ compensation insurance

The employer isn’t the one providing monetary benefits, but the insurance company. However, the employer has to provide the injured person a claim form within the 24 hours following the unfortunate event. It’s also necessary for you to provide the employee guidelines on how to file the claim with the insurance company. The laws and rights of the injured worker are sacred and the employer has to make sure not to disregard them.