3 Benefits Of Purchasing Workers' Compensation Insurance
If you own a business, you should purchase workers' compensation insurance. This will cover your employees if they are injured while on the job. If you would like to know more, check out these three benefits of workers' compensation insurance.
1. Following the Law
Depending on where you live, there are laws regarding workers' compensation insurance. For example, in most states, in most cases, you need to provide workers' compensation to employees. However, there are exceptions in some states, such as Wisconsin. In Wisconsin, you only need workers' compensation insurance if you have three or more full or part-time employees.
Again, depending on the state in which you live, you may be able to purchase policies from private commercial insurance providers. However, some states require you to purchase state-administered insurance. Ensuring you are complying with all laws reduces the risk of lawsuits and fines.
2. Reducing the Risk of Lawsuits
Workers' compensation protects you from lawsuits. If you provide workers' compensation, your employees must pursue that path instead of a lawsuit. Even if you have insurance for lawsuits, a lawsuit can cost drastically more because the employee can sue for:
- All lost wages
- Medical bills
- Pain and suffering
- Future lost wages
Workers' compensation insurance usually only covers medical bills and a portion of lost wages. Plus, you won't have to worry about additional attorney and court fees.
There are some instances in which an employee can sue. If a third party is involved, they can sue the third party, and if you purposely caused their injury, they may be able to sue you directly.
3. Protects Employees
Of course, the crux of workers' compensation is that it protects employees by covering medical bills for work-related injuries. This can take a lot of stress off the employees, and it can also make it easier for them to pay for treatment and get healthy faster, so they can get back to work.
It may also protect employees who are off company property but working at the time of the injury. If an employee gets into a car accident in their own vehicle while running a work errand, they may be able to file a claim.
In most cases, you need workers' compensation. However, even if you aren't legally required to purchase insurance, it can protect you and your bottom line. For more information or to get a quote, contact a workers' comp insurance provider today.