4 Advantages of Workers Compensation Insurance
Employers are legally responsible for providing Workers Compensation’ in most states. This falls back to your responsibility for the safety of your employees in the workplace. However, you may not be aware of the advantages of workers’ compensation insurance for employers. Let’s take a closer look at the extended benefits of buying this coverage.
Legal Liability Coverage
In its earliest incarnation, workers’ compensation insurance acted as a lever for employer-employee negotiations. Employers paid the legal costs of this process. Now, legal costs run much higher and could cripple small businesses. That’s why workers’ comp pays for legal liability coverage for the employer when an employee gets hurt on the job. Coverage can protect your business assets and prevent you from suffering financial losses.
Vocational and Occupational Illnesses
Workers’ compensation insurance offers coverage for vocational and occupational therapy. It also pays for re-training following an injury. If someone who works for you gets hurt on the job, they may no longer be able to do the work. Workers’ compensation can handle the cost of training the worker for a new position. Check with your insurance agent to find out whether your policy also pays for training for the employee to find work somewhere else.
Depending on the industry, employees may face a high risk for chronic illnesses like COPD or cancer. These occupational illnesses can obviously cause someone severe physical harm if not a premature death. They also might impact the employee’s ability to work for a living. Workers compensation’ insurance saves the employee money on medical bills and helps them manage their condition. Of course, this works out well for the company as well. They won’t have to contemplate protracted legal proceedings when trying to settle.
Lost Wages Compensation
Sometimes an employee only needs to take off for a short time. In these cases, workers’ compensation might pay a portion of the employee’s regular salary during their recovery. This saves employers quite a bit of money since they might have to pay this expense out of pocket otherwise.
With workers’ compensation insurance, employers might be able to tailor it to their satisfaction. This might long-term disability coverage for contractors or for hazards brought on by unique hazards.
If you know your rights under workers’ compensation insurance, you can take advantage of the benefits available. That can help you offer better benefits to your employees in the end. You might want to review your coverage options with your insurance agent.