Here's what you need to know about this essential insurance:
How Does Workers' Compensation Work?
Workers' compensation — workers' comp for short — is a form of insurance that offers restitution to employees who are injured at work or as a result of their job duties. In exchange for receiving workers' comp, employees give up their right to sue. This benefits everyone: employees get guaranteed compensation for qualifying injuries, and employers are able to avoid lengthy, expensive lawsuits that have the potential to lead to insolvency. So, what qualifies for compensation under this policy?
What Qualifies For Workers' Comp?
For the most part, any work-related illness or injury qualifies assuming you go through the proper procedure for filing a claim, and you can prove that it was caused by your work. In practice, most workplace injuries end up being covered. Workers' comp was designed to help you avoid drawn-out legal battles, so it's in no one's best interest to quibble for weeks over the minute details of every claim.
Two notable exceptions to workers' comp are injuries that occur while commuting to or from work as well as injuries that could be considered a public risk. That means if you catch something like the flu from someone at work, you probably don't need to file a claim.
How Does Workers' Comp Benefit Businesses?
Workers' comp is not just a courtesy to workers. There are many benefits for your business as well, the most obvious being that paying for workers' comp is generally much cheaper than settling a lawsuit. Another benefit is that it helps your employees recover from their injury and get back to work as soon as possible. Having a key employee get injured in the workplace and languish at home, unable to pay for the recovery they need, is not good for anyone.
The Differences Between Workers' Comp And General Liability Insurance
General liability insurance is another form of risk management for businesses. It covers claims of property damage, bodily harm and advertising injuries like slander and libel. It covers similar ground to workers' comp, but there is one huge difference: it doesn't cover employees. So, just because you already have a form of general liability insurance doesn't mean you don't need to offer workers' compensation as well.
Workers' compensation ensures that both your business and your employees are safe from the risks and liabilities that are inherent to doing business. With it, you can avoid the expensive litigation that often comes from workplace injuries and help your employees recover and get back to work. Workers' comp claims aren't always easy to handle, though, and you need to be able to work through these claims as efficiently as possible for it to be effective.
At Summerlin-Roberts we will work with you to implement a workers' compensation policy that resolves workplace injuries quickly and avoids unnecessary litigation. Please, contact us today to find out more about workers' comp options that are right for your business.