What is Workers\u2019 Compensation? <\/h2>\n\n\n\n
Our guide is going to walk you through everything you need to know about workers\u2019 compensation<\/a>. But let\u2019s start with the biggest question: What, exactly, is this type of compensation? <\/p>\n\n\n\n This compensation is actually a kind of insurance policy that an employer takes out. The insurance helps to pay benefits out to employees who suffer from a workplace-related injury or illness. <\/p>\n\n\n\n In this way, employees who are injured on the job don\u2019t have to worry about losing all of their income in the time it takes them to recover from the injury. <\/p>\n\n\n\n Whether you\u2019re an employee or own your own business, you\u2019re probably asking a particular question right now: Do employers have to purchase workers\u2019 compensation? The answer to this question is both \u201cyes\u201d and \u201cno.\u201d <\/p>\n\n\n\n The answer is \u201cyes\u201d in the vast majority of states because state governments require employers with at least one employee to purchase this insurance. Currently, only Texas does not have a mandate on employers purchasing workers comp insurance. <\/p>\n\n\n\n We always recommend that employers purchase this type of coverage. Otherwise, the legal fees and potential medical bills that come from employee workplace injuries may be enough to put the employer out of business! In most situations, once an employee accepts their workers’ comp benefits, they have given up the right to sue the business owner. <\/p>\n\n\n\n Because workers\u2019 compensation is an insurance policy, it\u2019s essential for employers to check the fine print. Employees, too, should know exactly what is covered by this policy. <\/p>\n\n\n\n While the exact things that are covered may vary from plan to plan, most workers\u2019 compensation policies cover employee wages while they are out of work. As we noted before, this ensures that a covered employee is not out of a paycheck indefinitely. <\/p>\n\n\n\n Additionally, compensation typically pays for medical coverage<\/a>. Because hospital bills, prescriptions, and other medical fees can easily put someone in major debt, this protection is especially important. <\/p>\n\n\n\n Should the employee wish to sue their employer, this form of compensation can even help pay legal fees! It offers robust protection for employees performing work-related activities out of the office (such as driving around and making deliveries). <\/p>\n\n\n As you can tell, a good workers\u2019 compensation plan can help pay for a great many things. Because of this, many workers can\u2019t help but wonder: Who is actually paying for all of this? <\/p>\n\n\n\n Even though the employer takes out the compensation plan, the actual compensation is paid for by the insurance company. This is where the paperwork comes from: As with automobile insurance<\/a>, employers and employees must provide the documentation necessary for the insurance company to pay anything at all. <\/p>\n\n\n\n If you own a newer business, you may be tempted to not get workers\u2019 compensation as a way of saving money. But as our guide will soon reveal, it is often much more expensive in the long run for your business to skip out on this important safeguard. <\/p>\n\n\n\n Whether they realize it or not, both employers and their employees need workers\u2019 compensation protection. To help you understand why we are going to take a closer look at the benefits this insurance provides to employees. <\/p>\n\n\n\n We already noted the primary benefit: Thanks to this insurance, covered employees who are injured at work don\u2019t have to worry about losing out on their only source of income. Similarly, these employees don\u2019t have to be worried about getting buried in a mountain of medical debt as they recover from their injury. <\/p>\n\n\n\n Finally, workers\u2019 compensation can be very empowering to employees. It provides the financial freedom for them to pursue legal action against negligent employers, if possible. On top of that, employers who understand how easily their workers can sue have that much more incentive to keep the workplace safe. <\/p>\n\n\n\n Now you know more about why employees benefit from workers\u2019 compensation. But do you know why this type of insurance is equally important to employers? <\/p>\n\n\n\n First, while workers\u2019 compensation can help workers sue an employer, most policies also provide the employer with liability coverage. This helps to pay for various legal fees as the employer defends himself in court. Without such protection, a prolonged legal battle would be enough to end most small businesses, even if they eventually won the case. <\/p>\n\n\n\n Second, without this insurance in place, you would likely have to pay for things like the medical bills of injured employees in order to keep them from suing you. And these out-of-pocket costs are typically far greater than regularly paying for workers\u2019 compensation. <\/p>\n\n\n\n Finally, a good workers\u2019 compensation policy can actually be a recruitment and retention tool for your business. When employees realize you have a policy that helps to protect their financial interests, they are likelier to work (or continue working) for your company. <\/p>\n\n\n\n While workers\u2019 compensation covers many things, there are a few things it doesn\u2019t cover. While you would need to check your own policy for the specifics, here are a few things that are typically not covered by these policies. <\/p>\n\n\n\n For the most part, workers\u2019 compensation does not payout if the employee was clearly at fault. This includes when an employee is working in an impaired state (as revealed by blood\/alcohol tests), if the injury was self-inflicted, or if the employee was injured while in the midst of breaking the law. <\/p>\n\n\n\n Now you know more about what workers\u2019 compensation is and what it covers. But do you know where employers can get the best compensation plans? <\/p>\n\n\n\n Here at Insure One, we make it easy for employers to protect themselves and their employees. To see how we can keep everyone\u00a0safe, come explore\u00a0our\u00a0workers’ compensation options<\/a>\u00a0online today! Alternatively, you can discuss your options with us at\u00a0the nearest office<\/a>\u00a0or by phone at 800-836-2240.\u00a0<\/p>\n\n\n\nAre Employers Required to Have Workers\u2019 Compensation? <\/h2>\n\n\n\n
What Does Workers\u2019 Compensation Actually Cover? <\/h2>\n\n\n\n
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<\/figure><\/div>\n\n\nWho Actually Pays Out For Workers\u2019 Compensation? <\/h2>\n\n\n\n
Why Employees Need Workers\u2019 Compensation Insurance <\/h2>\n\n\n\n
Why Employers Need Workers\u2019 Compensation Insurance <\/h2>\n\n\n\n
What is Typically Not Covered by Workers\u2019 Compensation? <\/h2>\n\n\n\n
Get the Best Workers\u2019 Compensation Today <\/h2>\n\n\n\n