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Worker’s Compensation Insurance

Every business, whether it is a small business or a large peak business is prone to workplace accidents/ hazards/ disasters. Worker’s Compensation Insurance, helps the business to cover a load of expenses of an employee medical health injuries or illness, during the workplace. This insurance can protect the small business even if there is one employee in a working state. This insurance helps the percentage of lost wages when an employee is under-recovery or unable to work for a while.

Worker’s Compensation Insurance helps the small business by insuring/ protecting the life of the people working for the business. This insurance provides financial support for the business when an employee is ill due to work-related aspects. Worker’s Compensation Insurance helps the small business, from going financial bankruptcy caused by workers’ injury.

  • Worker’s Compensation Insurance, also known as Workman’s Comp or Worker’s Comp is important for any business, even a single employee is at the workplace.
  • Worker’s Comp Insurance, for any business, helps overcome the wages of employees in case of absence during the working hours/ business days.
  • Business owners, can calculate the expenses of the employee and pay based on the average weekly wage, by multiplying the employee’s daily wage by the number of days worked in a full year, divided by 52 weeks to the average weekly wage.

What does it cover?

Worker’s Compensation Insurance covers the following aspects

  • The compensation paid for an employee when they encounter death, permanent partial/ total disablement, and temporary disablement and injuries at the workplace.
  • Depending on the injury nature, the average monthly wage, and age of the employee, the insurance covers for the business.
  • This insurance also covers the legal lawsuit when an employee sues the business for their loss/ injury at the work.
  • This insurance also covers the ongoing expenses of the employee, where they require more than one treatment and other physical therapy alike.
  • The coverage of Workman’s Comp insurance depends on the location, it varies from state to state. But can be acquired by any individual working as a full-time employee, contractor, temporary employee, and interns.

What it doesn’t cover?

Worker’s Compensation Insurance doesn’t cover everything, the insurance won’t help the business with

  • Certain types of workers and jobs may not be covered. They are business owners, volunteers, independent contractors, federal employees, railroad employees, and longshoremen.
  • If the injury or illness of an employee doesn’t result in a fatality or partial disability for a period of more than 3 days and total disability, not more than 28 days.
  • If the injury of the employee is caused under the influence of drugs/ alcohols.
  • Injuries are caused, while wrongdoings or illegal activities at the workplace.
  • Injuries during the violation of the company policy, self-inflicted(by starting a fight)
  • The insurance doesn’t cover the expenses of an employee’s injury, if not reported within the time limit, according to the company’s rules and regulations.
  • The insurance doesn’t cover injuries or illness sustained by non-employees, such as customers or vendors.
  • If the injuries of an employee occurred outside the workplace, will not be covered.

Pros of Worker’s Compensation Insurance

  • This Insurance pays for any expenses of the employee, where they got injured during work.
  • Employees need not make any contribution to this insurance or for their injury caused at work.
  • This insurance covers the unlimited liability of the employee.
  • This insurance can be extended up to 3 years if they met the circumstances.

Cons of Worker’s Compensation Insurance

  • Worker’s Compensation Insurance doesn’t cover everything, business owners should also consider other types of insurances, like health insurance to secure the life of their employees.
  • Sole proprietors, with no employees, need to require this insurance.
  • This insurance only covers the wages, expenses, and bills for the employee, when injured at work and which is reported within 30 to 90 business days.

Any individual small business owner with a single employee, hiring employees based on contracts, temporary employees, and in many other cases can have Worker’s Compensation Insurance. Business owners need to go through the policy before getting insured for further information.