Workers’ compensation insurance provides lost wages and covers medical expenses and rehabilitation costs for employees with work-related injuries, illnesses, or disabilities.
On the other hand, workers’ compensation insurance reduces employees’ risk of a large financial loss in case one or several of their employees are injured while performing their work duties.
This post discusses the benefits of workers’ compensation insurance to employees and employers.
Benefits of Workers’ Compensation Insurance for Employers
1: Lowers Business Costs
If one of your employees is injured while performing their work-related duties, you would want to be able to cover their medical expenses and compensate them for lost wages. In most cases, employees cannot cover medical expenses and recoup lost wages out-of-pocket.
Fortunately, with workers’ compensation insurance, you do not have to pay for out-of-pocket costs related to workplace injuries since the insurance covers lost wages, medical expenses, and rehabilitation costs.
2: Protects Employers
Employers who do not carry workers’ compensation insurance can be sued by their employees or their families in civil court for work-related injuries. Such a situation can be financially devastating for your business and open you up to criminal investigation, tarnishing your brand image.
To protect yourself from legal problems of this nature, invest in workers’ compensation insurance, which protects you in the face of adverse incidents.
3: Maintains a Good Reputation for Your Business
Work-related injuries can result in lawsuits against your business, which, in turn, can taint your business reputation and give your competitors an edge. With a tarnished reputation, your business can struggle to find top talent, making it almost possible to compete in the marketplace.
Investing in worker’s compensation insurance is essential as this helps maintain your business’s reputation.
Benefits of Workers’ Compensation Insurance for Employees
1: Covers Medical Expenses
Workers’ compensation insurance provides coverage to help employees pay for medical expenses related to work-related injuries, including emergency room visits, emergency surgery, and prescriptions.
2: Takes Care of Missed Wages
Workers’ compensation insurance replaces employees’ lost income if they need to take time off work to nurse their injuries.
3: Ensures Ongoing Care
At times, work-related injuries are so serious that they require ongoing treatment. For example, workers’ compensation insurance will cover ongoing care costs, such as physical therapy, if an employee sustains a back injury while lifting heavy equipment.
4: Temporary or Permanent Disability
Some work-related injuries can temporarily or permanently cause disability. Workers’ compensation insurance can cover employees’ treatment costs and supplement lost wages through disability benefits.
5: Short- and Long-Term Illness
Sometimes, employees are exposed to harmful chemicals that can lead to short- and long-term health effects. Workers’ compensation insurance covers the cost of necessary treatment if employees get sick after exposure to harmful chemicals or develop conditions.
6: Covers Funeral Expenses
Workers’ compensation insurance covers funeral expenses if an employee loses their life due to a work-related injury. It also provides lump sum compensation to the deceased’s family.
Invest in Workers’ Compensation Insurance
Workers’ compensation insurance benefits employers by lowering business costs, protecting them from adverse incidents, and helping them maintain the good reputation of their business. On the other hand, workers’ compensation insurance benefits employees by covering medical expenses, missed wages, ongoing care, temporary or permanent disability, short- and long-term illness, and funeral expenses.
If you have not yet invested in worker’s compensation insurance, do so today and enjoy its many benefits spread across the board.