Despite all attempts to make workplaces safe, accidents can and do happen. In the event an employee is injured on the job or because of job-related conditions, workers compensation insurance serves two very important purposes.
Provides for Injured Employees
Employees benefit from this type of insurance in a few ways. It can pay for the medical expenses of an employee who was injured and make up for the wages an employee loses during the period of time they are unable to work. In worst case scenarios, it may also give death benefits to the dependents of a deceased employee.
Protects the Company
In the event that an injured employee files a lawsuit against the company they were working for, this type of insurance helps to make sure that the company will not have to be financially responsible for related fees. Because the insurance can cover court costs, lawyer fees and any damages awarded to the employee, the company can have peace of mind that it will not go bankrupt or have to pay the injured employee’s medical bills or lost wages out of its own pocket.
Workers compensation insurance is able to help both an injured employee as well as the company they work for, and is extremely important for every business to have. Regardless of the size of the business or whether or not this insurance is a legal state requirement, it can be a very wise investment.