What is Workers' Compensation?

At its core, workers' compensation protects employees from injuries and illnesses that occur while working at their place of employment. Regardless of fault, workers' comp provides coverage for medical costs and lost wages to ensure that employees are taken care of in the event of an injury or illness. Workers' comp not only protects employees but also shields employers from lawsuits.

It's important to note that the injury or illness must arise out of employment and occur as a direct result of the employee's job. For example, if a convenience store worker trips over a display and breaks their leg, they would be covered by workers' comp regardless of who set up the display 

How does Workers' comp protects employers?

Workers' compensation was designed to protect an employee from financial devastation of a work accident or injury, but it's also guards the welfare of the business. If an employee is injured and uses workers' comp, they generally cannot sue the employer for that injury. This helps to avoid costly court battles and saves time for both parties involved. 

It is important to clarify that workers' comp only covers employees, not customers. While there is coverage available for customer injuries, it is separate from workers' comp. 

Is workers' Comp required for part-time workers?

Workers' comp is a legal requirement, regulated at the state level. Every state has its own specific regulations, but most states require workers' comp if a business has at least one employee, even if an employee is part-time. There are some states with exceptions to this rule, but it is still highly recommended to have it in place to avoid potential liabilities. 

Failure to have workers' comp can result in hefty fines and even potential felonies. It is essential to know your state requirements and to have proper coverage in place to protect both employees and your business. 

How much does workers' comp cost?

The cost of workers' comp varies based on factors such as payroll amount, nature of the business activities, and employees' job roles. The more employees a business has, the higher the cost of workers' comp. However, there are ways to control costs, such as implementing safety measures and reducing the number of claims. For example, having first aid on hand or promoting ergonomic practices can lower the policy cost. 

How do i get Workers' Comp insurance?

It is crucial to work with a knowledgeable broker or insurance agent to ensure that you have the right coverage in place and to explore ways to reduce costs. They can help guide you through the process and ensure that your business is properly classified to accurately determine the price. 

conclusion

Workers' comp is a vital aspect of protecting employees and businesses. It provides coverage for injuries and illnesses that occur on the job, while also shielding employers from potential lawsuits. Understanding the requirements and benefits of workers' comp is essential for any business owner. 

Do you need help finding the right workers’ comp for your business? Click on ‘Schedule a Call’ and see how Kaizen Risk Management can help protect your business.