workers compensation insurance

clock February 5, 2021

file Blog

7 Reasons Your Business Needs Workers Compensation Insurance

Statistics show that an employee gets injured at work after every 7 seconds, globally. It’s the responsibility of every employer to ensure that employees are safe at work. In case of any injuries, the employer should provide financial and emotional assistance to help the injured recover. Thanks to the workers’ compensation insurance, employers can ease their commitments in taking care of the injured employees.

The coverage ensures that victims of accidents continue to get a portion of their paycheck at home as they recover. While it is not one of the mandatory business-related policies, it has incredible benefits that you cannot ignore. Here are the seven main reasons why you should not hesitate to get workman’s compensation.

1. To Avoid the Personal Injury Lawsuits

Every type of business is prone to lawsuits at some point. For instance, if an employee sustains injuries at work, they would take you to court if they didn’t receive the right care or compensation.

And as you know, a lawsuit is one of the leading causes of business losses in a firm. If you hire lawyers and attend to every case in court, you might end up bankrupt.

Workers’ compensation insurance can help you escape all that. The insurance promotes peace between you and your employees by ensuring that they get what they deserve after an accident.

With their financial needs being well taken care of, the employees have fewer or no chances of suing you for fault-based injuries. So, invest in workers’ insurance today if you don’t like the idea of endless employees’ lawsuits.

So, find out if there are any employees in your firm with underlying health issues. Talk to them about the workers’ compensation insurance and motivate them to start contributing.

2. It’s a Requirement in Many States

Some states require all employers to have workers’ compensation insurance for the business, irrespective of its size and type. This means that you must have the coverage, even if you run a sole proprietorship firm, provided that it has an employee.

Even when you have employed your family members in the firms, you should still take the workers’ coverage. This legal requirement is common in businesses that operate in high-risk industries such as construction. 

Find out if workers’ compensation is mandatory in your state. Get it even if it’s not mandatory. You will have peace of mind knowing that you won’t incur many expenses in workplace injury cases.

3. To Avoid the Expensive Medical Costs or Rehabilitation Costs

The workers’ comp takes care of the injured employees’ medical expenses. Such expenses include:

  • The cost of hiring an ambulance
  • The hospital admission costs
  • The examinations/checkup costs for the injured
  • The costs of medicines
  • The costs of attending therapy sessions and rehabilitation programs
  • The long term costs of dealing with any disability case which the employee suffers from the accident

Those expenses could be too costly for you, assuming that many employees get injured at work. Plus, you could spend much time if you were to look at every injured employee at the hospital. 

For you to avoid that hassle, the workers’ compensation can save you time, while still ensuring that your workers get the best medical care possible.

4. To Utilize Your Employees Well

Accidents are inevitable. They can happen to anyone, including your favorite employee. And when that happens, then you can expect your business performance to start slowing down.

Even worse, you may incur other costs of hiring and training new staff to replace the injured ones. If you love your employees, you will do anything to help them maintain their health, and one great way is by assisting them to get worker’s compensation insurance.

As mentioned earlier, the injured will always receive handy hospital care, and they will have fewer absenteeism cases. 

5. To Get Death Benefits for Accidents Outside Workplace Premises

Did you know that workman’s insurance provides compensation to employees who get hurt outside the company? Maybe, they were delivering goods using the business car or were attending a business conference outside your premises.

That employee would get proper healthcare, and even death benefits in case they die. These benefits are highly beneficial to your business because you will not have to spend much on the follow-ups and the hospital bills.

Even if you contribute to the deceased family, your contributions will be out of goodwill. 

6. To Get Compensation for the Lost Wages

The workers’ comp insurance does not take care of medical costs only. It also ensures that the injured worker gets compensation for the lost wages.

For instance, if the injury has made the employee miss work for two months, the insurance will provide a partial income for those lost days. 

This is a great advantage in cases where the injured employee was the primary breadwinner of the family. As an employer, you will not feel the financial burden of paying an employee who has been absent from work nursing the injuries.

7. To Cover the Occupational Health and Illnesses

Some employees develop asthma and other chronic illnesses that could be tied to the nature of their work. Though not directly related to workplace injuries, employees with such conditions may occasionally miss work when the conditions worsen.

Workers’ comp can help you handle this issue. The coverage ensures the worker saves enough cash to cover treatment costs. 

When the condition worsens, the insurance helps the worker gain immediate medical assistance. This could translate to better productivity for a business since workers will be back on their feet after a short duration.

Get a Workers’ Compensation Insurance Today

Every business requires numerous types of insurance covers, and workers’ compensation coverage is one of them. While it takes care of the employee’s needs, it has multiple benefits to the businesses too. 

So don’t ignore it. Consult a reputable workers’ compensation insurance provider to know how you can get it and how your employees can benefit from it. Unforeseen events can happen in your business, and you will be better off with the coverage.

Consult for your workers’ insurance needs. We help business owners like you make the right decisions regarding the right insurance covers to take. 

Our services are fast, effective, and we maintain open communication with our clients to help them make the right decisions. Talk to our team today to get answers to your queries and get the best advice on workers’ compensation.

Get In Touch

We are standing by waiting to help you withyour questions – 24/7