New Year, New Injuries: Do You Have Workers’ Compensation?

Good employees are the backbone to any successful business. If you want your team to remain happy and productive, you must continue to provide a healthy and safe working environment.

Even in the most safety-centered of workplaces, work-related injuries may occur and workers’ compensation is a must have. In the event of a workplace accident, are you prepared?

What is Workers’ Compensation Insurance?

Workers' compensation is a type of insurance that offers employees compensation for injuries or disabilities sustained as a result of their employment. By agreeing to receive workers' compensation, workers are also agreeing to give up their right to sue their employer for negligence. This "compensation bargain" is intended to protect both workers and employers.

The Purpose of Workers’ Compensation

Ever feel like workers’ comp is just another way for insurance companies to get you to spend more money? If you have a zero-accident record, is workers’ compensation really necessary?

If an employee suffers a work-related injury severe enough to seek medical treatment and miss days from work, they are not only missing out on important income, but you are missing a vital member of your team. Workers’ comp benefits can help your employee receive income while away and get the care that he or she needs. Additionally, workers’ comp typically protects you from a lawsuit.

Is it Mandatory?

The regulations concerning workers’ comp vary from state to state and although there are a few exclusions, like farmers or independent contractors, employers are required to provide some type of workers’ compensation insurance. So, even if your business fits certain exemptions, it may not be a bad idea to provide workers’ comp to your employees. Keep in mind that if you opt out or delay on the insurance, you may have some hefty penalties.

The Cost of Workers’ Comp

Many business owners want to know how much it will cost to insure employees before implementing workers’ comp, but the cost varies depending on where you live, the number of employees you have, and the type of business. Either way, providing the insurance can save you a lot of money and hassle in the long run (and in the event of an injury). By doing things like managing your risks, you may be able to lower the cost of your workers’ comp premium.

Will the Rate of Workplace Injuries Actually Increase?

Some business owners worry that if they offer workers’ comp, employees will become careless and the rate of workplace injuries will increase. If an employee really wanted to take advantage of his or her employer, he or she would figure out a way to create a lawsuit, but in general, employees aren’t looking for an easy way out.

While workers’ comp benefits assist injured employees by covering certain expenses during their time away from work, it’s hardly enough to “strike it rich.” When you offer workers’ comp benefits, your employees may actually feel more appreciated and cared for; thus, they work harder, feel safer, and help your business succeed and grow.

About the Author: R. Pagliaro has been an offshore survey engineer, a computer engineer, a teacher, and more recently a freelance writer and stay-at-home mother of a toddler who never rests. While tackling daily motherhood, she enjoys hiking the desert mountains, watching an exciting movie, or catching up on a good book. Being a former military brat and military spouse she has had the fortune to travel and obtain a lot of information regarding various subjects. She is currently working on gathering more information and sharing what she has learned with those looking for knowledge or insight into topics such as military living, parenthood, and insurance...just to name a few. You can reach her on Facebook here:

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