Workers' compensation insurance, often referred to as workers' comp or WCI, offers many benefits business owners may not be aware of. Even small businesses that aren't legally required to purchase workers' comp protection (according to their state laws) for their employees may enjoy many benefits by doing so. These are just a few of the benefits businesses can enjoy thanks to the workers' comp coverage they provide for their employees.
You're Protecting Your Greatest Assets: Your Workers
Workers' comp insurance protection exists to provide some income protection and medical coverage for employees who are injured, become ill, or are killed while carrying out their work responsibilities for your company. You invest heavily in your employees, and you want what is best for them. Workers' compensation insurance allows you to be confident that you can help your employees if they become injured while working for you by providing:
- Payment of medical bills.
- Replacement of some of the employee's lost wages.
- Rehabilitation and retraining costs for employees.
- Income for employees with permanent disabilities.
- Survivor benefits if an employee dies from their injuries or illness.
Depending on state laws and the specific WCI coverage, there may be gaps in coverage and costs to consider. You will have to decide if your organization wishes to invest in additional protection for your employees.
Workers' Comp Protects Businesses from Legal Actions
Businesses that do not have workers' compensation insurance, even businesses that are exempt from legal requirements, are subject to lawsuits from injured workers or their families. These types of lawsuits can be financially devastating — especially to small businesses. If you were required to purchase workers' comp coverage for your employees and failed to do so, it can be doubly devastating.
Purchasing Workers' Comp Delivers Peace of Mind
Business owners have enough to worry about. The day-to-day operations of your business can be consuming. When you know you have workers' comp coverage for your workers, you don't have to lose sleep wondering what will happen to your business if an injury, accident, or illness occurs. You know you're protected.
What Workers' Comp Insurance Doesn't Do
Workers' comp coverage does not absolve business owners of your responsibility to provide a safe working environment for your employees. In fact, if you don't maintain a sufficient record of safety, your workers' comp insurance costs will rise to encourage more stringent safety rules. Plus, if employees decide it was negligence on your part that caused the injury, they may have cause to sue your company anyway. Make sure you mind your safety protocols in addition to providing workers' comp protection to your employees.
These are just a few of the benefits businesses enjoy when they provide effective workers' comp protection to their employees.