Why Worker’s Compensation Insurance is important to any business

2nd March 2010

Worker’s compensation insurance is very important to any business of any form. No matter what your business does, if you have employees you need this insurance. It covers companies with one employee to thousands of employees and it covers both men and women. It will cover mental injuries that result from a job or physical injuries. It is an important policy for businesses.

Most of this type of coverage protects workers who are doing contract jobs offsite or who get injured on the actual property of the business. Really the only rule that applies is that the employee must actually be doing a job for the business when the accident occurs. They have to actually be clocked in and this applies to automobile accidents as well. If they are driving to or from a job and are still on the clock then it will be covered.

For example, say you working as a roofer for a company. You are using a nail gun and accidentally run a nail through your hand. Now besides that fact that it will hurt a lot, the medical bills will begin to accumulate quickly. There will probably be a fee for the ambulance ride, surgery and rehabilitation. Without workmen’s compensation insurance there could be a long wait before you get these paid for. On top of the wait you might still end up having to pay for everything out of pocket. Workman’s comp is a good policy to have.

Worker’s compensation insurance protects a business from a lot of bills that could occur from an accident. It covers bills, damages and many other things that could occur from an accident. Most often the medical bills are covered; however, sometimes even the lost wages and death benefits are covered under this insurance policy.

One thing that should be paid close attention too is the fact that worker’s compensation insurance is not medical insurance. It will only cover incidents that happen at work or a work related job site. Medical insurance covers any type of medical incident on or off the job, workers compensation insurance does not. On top of this you pay a portion for medical insurance as an employee. Employers cover the cost for worker’s comp. In most places today this type of coverage is required for businesses.

In today’s world companies are required to carry some type of insurance coverage in most places. Besides the fact that it is the law it is a good thing to have. Accidents can and do happen all the time. They are especially likely in a workplace where you use tools and are often on job sites you might be unfamiliar with. In these cases it is often a good preventive measure to take in order to have your business and your employees covered. This will ensure that no one loses any money out of pocket for expensive medical bills that could result from an accident on the job. So cover your company and invest in worker’s compensation insurance.