As an employer, you are responsible for your employees’ workplace safety and security, and you may be deemed responsible if an employee is injured while on the job. That is why workers’ compensation insurance coverage is essential. While most employers are aware of the basic benefits that workers’ compensation coverage offers, few know about the extended benefits it provides.
Legal Liability Coverage
When workers’ compensation insurance was first developed, it was meant to serve as a bargaining position between employers and their employees. At the time, employers were covering all the costs of legal suits involving employees injured on the job. Today, legal costs can be astronomical and may be financially crippling for businesses. Workers’ compensation provides legal liability coverage for a business if an employee is involved in an incident or accident on the job.
Vocational Rehabilitation Expenses
Workers’ compensation also provides coverage for training expenses. If an employee is injured on the job and is no longer able to continue in the same type of work, workers’ compensation can cover the cost of that employee training for a new job within the company or the cost of obtaining future employment elsewhere.
Occupational Illnesses and Conditions
In some cases, respiratory illness such as asthma or chronic bronchitis can be directly linked to an employee's work. Occupational illnesses and conditions can have a profound effect on an employee's quality of life and productivity at work. Workers’ compensation can help the employee save money on medical expenses and manage their condition, enabling them to be productive at work.
Lost Wages Compensation
It is understood that a workers’ compensation policy will cover the cost of an employee's disability, whether it is partial or total. In some cases, however, an employee is only out of work for a short time. In that situation, the employer becomes responsible for covering the employee's lost wages. Workers’ compensation insurance provides coverage for half of the employee's usual income while the employee is temporarily disabled.
Special Add-on Covers
Workers’ compensation also gives employers the option to include add-on coverage. Employers can purchase disability coverage for sub-contractors, or coverage for unusual circumstances such as disability or injury resulting from a terrorist attack that occurs during work hours.
Workers’ compensation insurance policies cover current employees from the start date that the policy goes into effect. This also includes retroactive State and Federal legislation, including the Fatal Disability Act, 1855 and the Workmen Compensation Act, 1923.
As an indispensable protection for any business, workers’ compensation insurance benefits both the employer and employees in many ways. Poms & Associates offers a broad range of business insurance and brokerage services and provides the most current information on a variety of business insurance policies, including workers’ compensation coverage. For more details about the basics of workers’ compensation, and to find out how Poms & Associates can help you choose the right coverage for your employees, please visit our website or contact us.