Worker’s Compensation insurance, often referred to as worker’s comp, is a type of insurance coverage that ensures the care for workers who are injured while performing their job duties. If an employee hurts themselves on the job, they are entitled to receive worker’s comp to cover the costs of medical bills. Similar to disability insurance, worker’s comp will also cover lost wages due to the inability to work for a certain period of time caused by the workplace injury.
Worker’s compensation insurance is generally regarded by the public to be a great service offered to employees. For many employees, having the safety of a worker’s comp policy offered by their employer allows them to more effectively accomplish their job tasks without having to worry about injuries causing increasingly high medical bills as well as lost wages caused by workplace accidents. In many, but not all states, worker’s comp is required to be offered by companies who employ more than a certain number of individuals.
What many people do not realize though, is that offering worker’s comp can also be a great benefit to employers. Generally, by receiving worker’s comp benefits, an employee who has been injured on the job gives up their right to sue their employer for wrongdoing associated with the workplace injury. By having this tradeoff, employers can protect themselves from hefty lawsuits that can interrupt the company’s ability to continue business.
State law differs on whether or not worker’s comp is required to be offered by the employer. Please check your state’s laws to know whether or not this is a required offering for your business. Even when employers are not required to provide worker’s comp, the coverage proves to be a great benefit to both employers and employees. With unemployment rates dropping creating a more competitive hiring environment, great companies like yours can attract and retain better talent by offering quality worker’s comp benefits.