Offering employment to an individual or several individuals requires appropriate insurance coverage. A business insurance policy does not always offer the coverage you need as an employer. In many cases, you must purchase workers’ compensation coverage for your employees. Understanding the basics of the policy will help you avoid legal complications as an employer.
What the Policy Covers
A workers’ compensation policy covers work-related injuries and illnesses. The state sets minimum standards for your employees, but you may decide to purchase extra coverage for your peace of mind. The policy protects your business from liability risks when your employees get injured on the job or get sick due to the specific responsibilities of the job. For example, if an employee falls and is injured at work, then your workers’ compensation insurance will pay for the medical costs. It also covers work-related sicknesses, such as a sickness from handling chemicals.
The policy does not apply to injuries outside of work. An employee may not qualify for coverage if they were using drugs or alcohol at the time of the injury. It also does not apply to self-inflicted injuries or injuries that occur while ignoring company policies.
Why Employers Need Workers’ Compensation
Employers need workers’ compensation insurance for two primary reasons: you want to comply with state laws and it protects your business from lawsuits. The insurance pays for injuries to your employees up to a specific amount. It gives you peace of mind when your employees face certain risks.
Workers’ compensation insurance is a type of commercial insurance that protects against the risk of injuries in the workplace. It benefits employers as well as employees. You want to purchase the policy when you plan to hire your first employee to avoid any financial risks to your business. Contact Absolute Value Insurance today to learn more about your coverage options or for a free quote.
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