As part of a comprehensive business owner policy, you should have workers’ compensation for your business. Here’s why:
Benefits for the Business
In the event that an employee is injured at work, they may have the power to sue the company for negligence. If you want to avoid the legal fees and trouble of a lawsuit, it is best practice to offer all employees workers’ compensation. This grants the injured employee payments for medical fees related to the injury as well as lost wages while they recover until they can return to work. Beneficial to the business, when an employee accepts workers’ compensation, they agree not to sue the employer.
This is also a good way to build trust with your employees. Offering them guaranteed payment is especially crucial for hazardous jobs, such as manufacturing or construction. Injuries are often under-reported, but being a responsible employer and encouraging the health of your employees will mean retaining your best talent and attracting potential employees.
Regardless of whether or not a worker has an accident at your business, you are required as an employer to pay toward workers’ compensation every month through your payroll expense. Benefiting from the limited liability of the compensation bargain should be reason enough to offer workers’ compensation.
What It Covers
Workers’ compensation is sponsored by the public. The plan covers medical fees associated with the injury. If the worker becomes disabled as a result of the injury, workers’ compensation will provide payments even though they may no longer be able to work there. Many plans also offer what is essentially sick pay, paying wages until the employee recovers from their injury and is able to return to work. In the worst case scenario, if an employee dies in an accident at work, payments will be made to the family or dependents.
Benefits for Employees
All parties will benefit from not having to pay legal fees. The worker has guaranteed payment to cover medical bills, which are likely their biggest worry and first priority in the case of an accident. If an employee chooses instead to sue for negligence, they are not guaranteed to win the case. The business holds liability coverage to protect itself in the case of injury on the property. For jobs with the potential for injuries, workers will benefit from the safeguard of workers’ compensation by knowing they have a guaranteed payment should they take advantage of it.
For all of your property and casualty insurance questions, please speak with an agent from the Redwood Agency Group.
