Injuries to employees can be devastating for businesses, especially small businesses with fewer employees available to take on new roles when an injured worker is on leave.
While workers compensation insurance will help pay medical costs and replace an injured employee’s lost income, your business will have to absorb costs associated with reduced productivity, overtime, training replacements, and so on.
To help employees—and your business—recover from a workplace injury, your company will need workers compensation insurance.
What Workers Compensation Covers
A workers compensation insurance claim can be filed if an employee is injured at your workplace or while on the job at another location. A claim can also be filed if a worker is injured in a vehicle accident while on business. Costs are also covered for employees that develop work-related illnesses. Your workers compensation insurance will cover:
• Income Benefits–Replaces a portion of an employee’s salary when work is missed.
• Medical and Rehabilitation Costs—Pays necessary medical care to treat work-related injuries or illness.
• Funeral Expenses—In the case of death, funeral and related expenses such as burial or cremation are covered.
• Death Benefits—Paid to a surviving spouse and dependents.
Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. Workers compensation insurance requirements for employers vary from state to state—and knowing the requirements for your state is essential to protecting your business