Workers’ Compensation Insurance 101: A Beginner’s Guide

As an employer, you must take steps to safeguard the health well-being of your employees. However, even the most robust safety measures and well-planned risk aversion tactics may not be able to prevent every workplace incident. That’s why workers’ compensation insurance can be one of the most important investments your company ever makes, potentially providing a financial lifeline for employees and employers following incidents.

What Is the Purpose of Workers’ Compensation Coverage?

A workers’ compensation insurance policy is a staple of most businesses’ coverage portfolios and overall loss control measures. This type of insurance can provide various forms of financial assistance for your organization and its employees in the wake of on-the-job injuries and illnesses. Without adequate coverage, workers may lack the ability to recover from their ailments, potentially leading to lower quality of life, decreased productivity and financial hardship.

What Do Policies Cover?

Workers’ compensation claims may be filed in response to many common workplace incidents, many of which may be relevant across most industries. While exact details of your policy may vary, you can generally rely on coverage for the following:

• Sprains
• Strains
• Lacerations
• Burns
• Fractures
• Contusions
• Repetitive stress injuries

What Are the Benefits of Workers’ Compensation Insurance?

Your workers’ compensation policy may pay to assist with various losses and expenses, including the following:

• Medical bills—If employees require professional health care services to address work-related injuries or illnesses, your policy may help foot the cost.
• Wage replacement—Should employees’ ability to work be adversely impacted by an on-the-job ailment, coverage may compensate them for income they would have otherwise earned.
• Disability benefits—Insurance may help cover ongoing financial aid for employees who develop temporary or permanent disabilities.
• Death benefits—Fatal injuries and illnesses may lead to coverage paying out to the deceased’s family.
• Employer legal costs—Policies often include employers liability coverage, which can assist with losses and legal expenses, such as attorney fees, settlements and judgments, should an employee choose to sue your business over their injuries or illness.

Additionally, having the right coverage can help employers fulfill legal requirements and enhance their reputation while competing for talent in the labor market.

We’re Here to Help

Contact Huddleston Insurance Services today to learn more about workers’ compensation coverage or to get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.