Worker’s Compensation: Beneficial for Workers and Employers
Worker’s compensation is an insurance policy that provides an employee with compensation for injuries, lost wages, and other expenses resulting from an on-the-job injury. Worker’s compensation is a legal requirement for any business with 4 or more employees.
A policy isn’t just for the benefit of employees. The employer also benefits from having worker’s compensation protection. Without this coverage, a business could face several lawsuits and legal troubles caused by on-the-job injuries. So in short, having coverage can protect a business from going bankrupt from dealing with constant legal proceedings.
As stated above, any business with 4 or more workers should have a worker’s compensation policy. But the specifics of what’s covered might vary depending on the industry. For example, a policy held by a construction company will likely differ from one held by a bank.
An injured worker must first inform the business owner of the injury. If the injury falls within the scope of the policy, then the insurer will issue benefits to the injured worker. The benefits are intended to replace lost income and pay for medical expenses while the worker is recovering from the injury.
How the Employer Benefits
When an employee accepts worker’s compensation, they agree to not sure their employer over the injury. This makes things simple for the business owner. It saves them from having to grapple with legal issues concerning injured employees.