From minor slips to serious falls, it’s an unfortunate reality that many individuals are injured on the job each year. Workers’ compensation is an insurance program created to cover an employee’s lost wages if a person is injured at work.
Most United States businesses are required to have workers’ compensation insurance to protect their employees. If you need advice about a claim against your business, an Iowa workers compensation attorney will be able to guide you.
1. Workers’ Compensation Insurance Can Save Your Business.
Insurance is a vital (and often legally required) component of your business plan. Without the right workers’ compensation policy, an injured employee could directly sue your company for damages. As a result, you may be required to pay reparations, including medical bills and lost wages, right from your pocket. These financial losses are often devastating, especially for small businesses.
2. The Policies Usually Cover Fatal Accidents.
Insurance plans aren’t limited to injuries such as broken bones or carpal tunnel. Since fatalities can occur in certain workplaces, most workers’ comp policies also include death benefits.
If an employee dies as a result of a work accident, the insurance policy will kick in to help the employee’s family pay for funeral and burial expenses. In addition, some funds can be used to support dependants if the deceased employee was providing financial support.
3. Coverage Is Required in All but Two States.
Each state has specific laws regarding workers’ compensation insurance. Generally, a business is required to have active insurance when the first employee is hired.
Texas and South Dakota are two states where workers’ compensation insurance is never mandated. Other states require coverage only if a company has more than two, three or four employees. Since the requirements vary by state, it’s important to review your local laws to be sure your business is in compliance.
4. Workers’ Comp Can Pay for Employee Lawsuit Costs, Too.
A workers’ compensation policy will often cover more than just the costs incurred by an injured employee. In most states, the policy also covers attorney fees, settlement costs, judgments and court costs associated with the lawsuit.
However, if you conduct business in North Dakota, Wyoming, Washington or Ohio, your workers’ compensation policy won’t include this employer’s liability coverage. Instead, you’ll have to purchase your policy from a state fund. You could also purchase stop gap coverage to insure your business against employee claims.
Workers’ comp is a critical part of your company’s financial wellbeing. It’s important to know your state laws and coverage requirements to be sure your company is protected in the event of a lawsuit.