While many employers secure workers compensation insurance to satisfy legal requirements, this important safeguard has the power to protect business interests while building a bond of trust and respect with employees.
According to the National Safety Council, accidental injury is the third highest cause of death in the United States. Based on study findings, researchers concluded that someone is injured every second and killed every three minutes. The study also found that job-site deaths increased by 10 percent in 2016.
Now more than ever, it’s important to not only have coverage, but to make sure employees know their rights and responsibilities for a safe workplace. These are some of the biggest benefits of workers compensation insurance:
1) Comprehensive Coverage
Not having a worker’s compensation policy in place means that you lose the common law defenses available, which are: assumption of risk, contributory negligence, and negligence of a fellow employee.
This insurance provides payment of medical bills and other expenses involved when an employee is injured on the job. It also makes allowances for the collection of lost wages. In the case of fatal injury, funeral expenses and dependent financial support are covered under most policies.
It’s important to note that claims can be made whenever and wherever an employee is hurt while on the job —regardless of the proximity to your office. That includes business trips, conferences, office errands, and other job-related tasks.
Also covered are injuries that occur over time (cumulative) and diseases caused by workplace conditions. Self-inflicted injuries, illegal activity, and employee-initiated violence are not valid workers compensation claims.
2) Involvement in the Process
Ideally, no employee would ever file a false workers compensation claim. Unfortunately, it does happen. This coverage protects you against fraudulent claims and lawsuits, but also allows you to begin the process with a company-trusted physician.
Many employers exercise their right to select a physician for a one-time evaluation. After that, employees can choose to remain with that doctor or choose another specialist. While this provision is in place to discourage fraud, it also avoids the time and confusion of having to start fresh with a new physician for each claim.
Also, the injured employee, generally, cannot sue an employer, for work-related injuries if the employer has purchased workers’ compensation insurance as required by law.
3) Community Stewardship
As a business owner, you want to do right by your team members and customers. While you review the many benefits of workers compensation insurance, it’s also wise to be aware of the consequences associated with not having adequate coverage. This includes:
Also, you are personally held responsible for the employee’s injuries and lost time from work if there is no workers compensation policy in place. In addition, companies who don’t protect their interests and those of employees soon get a negative reputation, which could affect customer loyalty.
4) Peace of Mind
It is the right thing to do. Having an employee injured in the workplace is a public relations nightmare. The integrity of your company, and you, are put in the spotlight anytime an accident occurs at your workplace. When a team member is hurt, it’s natural to have immediate concerns for their well-being. At the same time, there are legal considerations to protect your business assets. Workers compensation insurance also puts in place protection against fraudulent claims.
Since 2002, we’ve helped countless Central Florida companies secure the necessary insurance to protect business assets. From workers compensation to business and commercial, construction, risk management, and more, our qualified staff can help you find the best insurance solutions for your business. Contact us today to discuss your workers compensation program!