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How Does Workers’ Compensation Insurance Work?

As an employer, there are several different types of insurance coverage that you need to obtain and maintain. However, one of the most crucial types of coverage you need to acquire is workers compensation insurance. If you’ve ever wondered what this insurance is used for and how it works, here’s what you need to know.

Employees

When your business has a workers compensation insurance policy in place, any bodily injury that one of your employees incurs while at work is covered. For example, if one of your workers falls while performing their duties because of a spill on the floor, he or she would be able to obtain compensation for his or her injuries. Some of the common benefits available to injured employees include death benefits, permanent and temporary disability, and medical treatment.

Employers

If you have workers compensation insurance, your policy will protect you in case you are ever found civilly liable for an employee injury. This form of insurance also protects your business against claims relating to the care and loss of services, claims filed by third parties, and consequential bodily injury claims filed by a family member of an injured party.

If you don’t already have this type of insurance, don’t let your business remain at risk any longer. Instead, you may want to consider contacting an insurance agent to discuss available coverage options.