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A Short Guide To Workers’ Compensation Insurance

If you run a business, it is important that you understand workers’ compensation insurance. Workers’ compensation is a vital part of any business insurance plan and can protect you from major financial loss. Below are the answers to a few commonly asked questions about workers’ comp.

What Is Workers’ Compensation?

Workers’ compensation is a type of insurance coverage that protects businesses and employees from financial loss in situations where a worker is hurt while working or gets sick from a job-related cause. It helps employees by covering the costs of their work-related injuries and it helps employers by protecting them from uncovered workers’ compensation claims.

What Is Covered By Workers’ Compensation?

Workers’ compensation covers a variety of things related to on-the-job injuries and illnesses. It can cover things like medical expenses, lost wages, and even funeral expenses if the worst-case scenario occurs and an employee dies on the job.

What Is Not Covered By Workers’ Compensation?

Some situations that occur on the job are not covered by workers’ compensation. Some of these are:

  • Injuries due to a fight that the employee started
  • Injuries due to intoxication in the workplace
  • Self-inflicted injuries
  • Emotional injuries that are not due to physical workplace trauma

Work-related injuries can potentially be costly for both employers and employees. Workers’ compensation can make a huge difference.