Different states throughout the U.S. have a wide range of requirements when it comes to workers’ compensation insurance coverage. With that in mind, there are many benefits that make this insurance a wise investment, regardless of what is required in the state where your business operates. These are just a few of the benefits that go along with investing in workers’ compensation insurance for your employees.
Compliance with State Laws
Remember, each state has its own set of laws governing workers’ compensation. If your business operates in and has employees in more than one state, then each entity must comply with the workers’ compensation laws of the state where it employs people. Failing to be in compliance with state laws can lead to steep fines and penalties along with hefty lawsuits if work-related injuries, accidents, and/or deaths occur.
Improved Employee Morale
Employees, especially those in somewhat dangerous jobs, appreciate feeling as though they will be covered for the duration of their injuries and recoveries (not to mention have jobs to return to) in the event that something bad happens on the job that puts them out of commission for a while. It gives them important peace of mind and helps them feel more confident in you as their employer. They want to know they’re covered when injuries, accidents, etc. happen. Workers’ compensation insurance is your way of letting them know they are.
Reduction in Injury-Related Lawsuits
No business enjoys being sued. While workers’ compensation coverage will not completely eliminate all injury-related lawsuits from workplace injuries, it will reduce many of them.
However, you should be aware that workers’ compensation coverage doesn’t extend to all worker injuries. In general, there are very specific issues, according to NOLO Law for All that are not covered by workers’ compensation insurance including:
- Self-inflicted injuries
- Intoxication-related injuries
- Injuries related to the commission of crimes
- Injuries suffered outside of work
- Injuries resulting from employee fights or on-the-job horseplay
- Claims made by employees who are fired or laid off work
- Injuries to independent contractors
Removes Employer Responsibility to Pay Injury-Related Expenses
Of course, this is assuming that the business isn’t self-insured for workers’ compensation coverage (which is only allowed in some states). For the most part, businesses come out ahead by investing in workers’ compensation insurance and leaving the operation of the insurance funds to people who are well-versed in the state’s legal requirements rather than trying to manage insurance coverage and the businesses they operate simultaneously – especially those in high risk professions such as construction, manufacturing, etc.
Workers’ compensation benefits offer peace of mind to employers and employees alike. Its value and benefit in the modern workplace shouldn’t be easily dismissed or overlooked.
We invite you to learn more about the benefits of workers’ compensation insurance by speaking with a BOLT insurance agent today.