Business owners have multiple types of insurance to protect them from a variety of financial and legal risks. They should also protect their employees with workers’ comp insurance. Here’s what you need to know about this type of insurance coverage.
What Is Workers’ Comp?
“Workers’ comp” is short for “workers’ compensation” and can help pay for medical care and other expenses if one of your employees becomes sick or is hurt on the job from hazards like exposure to chemicals or a fall. It can also cover injuries from repetitive use that develop over time rather than an acute injury that happens suddenly.
You should consider general liability insurance and perhaps additional commercial umbrella insurance to protect your business in the event that your business is responsible for injury or harm to a non-employee, but workers’ comp is meant for providing coverage to your employees.
What Does Workers’ Comp Cover?
Workers’ comp typically covers a wide range of expenses related to employee illness, injury, or death, such as:
- Emergency transport and ER care
- Hospitalization
- Inpatient diagnostics and treatment
- Surgery
- Ongoing outpatient medical care
- Medications
- Prosthetics
- Physical therapy, occupational therapy, and rehabilitation
- Disability benefits
- Lost wages due to time off work
- Funeral expenses
Why Should Your Business Have Workers’ Comp Insurance?
While many employers take out workers’ compensation policies because it’s the right thing to do for the workers who help their businesses thrive, most states also require workers’ comp if you have a certain number of employees — sometimes as few as one or two.
The laws vary from state to state regarding the specifics, as well as factors like exemptions for certain industries and requirements for family members, interns, and independent contractors. Having benefits like workers’ comp can help you recruit and retain employees too.
Be sure to ask about the workers’ comp laws that govern your area. In some states, workers’ comp insurance can only be purchased from state agencies; in others, you can buy an insurance policy through an insurance agent of your choosing, such as from ISB Insurance. Contact us at 713-996-8210 today for more information or to request an insurance quote.