Most business owners know that workers’ compensation insurance is one of the essential insurance vehicles for today’s businesses. But what is workers compensation insurance exactly? Here’s what you need to know.
Who Needs Workers’ Compensation Insurance and What Is It?
Workers’ comp is for companies of all sizes, no matter how small or large, that employ one or more people. Workers’ compensation insurance is a legal requirement for companies in which an employee-employer relationship exists. It is crucial to know that business owners are not required to carry workers’ comp for independent contractors. An excellent workers’ compensation insurance is in place to protect both employer and employee.
What Does Workers’ Compensation Insurance Cover?
If one of your employees gets injured at the workplace, workers’ compensation insurance pays for his or her expenses resulting from this unfortunate incident. It also covers your legal expenses if said employee claims that you’re responsible for this accident or sickness and ends up suing you. So, while the amount of coverage and the exact stipulations depend on the insurance you end up getting, there are certain things that every workers’ comp covers. These aspects are:
- Missed wages
- Medical and rehabilitation expenses
- Death benefit
- Legal expenses and defense costs
Now that you know what worker’s comp entails, what is workers compensation insurance really? Workers’ compensation insurance is an absolute must, and no business owner should go without it. The well-being of your business and your employees depends on it.