Workers’ Compensation Insurance

Workers' Compensation Insurance

Workers’ compensation insurance protects employers from claims resulting from injuries to employees. It protects your business from lawsuits and provides employees with compensation for on-the-job injuries.

By law, most employers are required to provide coverage for lost wages and medical bills incurred as a result of on-the-job accidents or illnesses. For many businesses, workers’ comp coverage is the largest part of its insurance expense.

 


 

Workers’ Compensation Insurance FAQs

What is Workers’ Compensation Insurance?

In general, the current Workers’ Compensation system represents a compromise between employers and employees regarding employment-related injuries or illnesses. Basically, employees relinquish their right to sue employers if they suffer some job-related injury or illness. In return, employers agree to provide state-mandated benefits if such injuries or illnesses occur. To ensure employers will have the money to pay these mandated benefits, most states require that employers demonstrate that they have the financial ability to pay any claims that may arise. Typically, this financial ability is demonstrated through the purchase of Workers’ Compensation insurance.

What should I do if I have a loss?

We recommend taking the following steps as soon as possible:

  • Provide for immediate medical services as required by workers’ compensation law.
  • Contact you agent for claim reporting procedures. You will need to provide the date, address and Social Security number of the employee, nature of the injury, etc.
  • Upon notification of the claim, the insurance company will contact you with further instructions.
  • Note: If the claim involves a death, be sure to file OSHA reports within eight hours.