One well known form of business insurance is worker’s compensation insurance, which provides coverage for statutory benefits to employees who are injured on the jobsite. It is a legal and ethical responsibility that all employers have to their employees to make the workplace a safe one. As safe as a workplace can be, accidents can and do still occur, even if several safety measures have been taken.
This type of business insurance was created in order to protect employers from lawsuits resulting from workplace or work-related accidents or illnesses. Worker’s compensation insurance also provides medical care and compensation for lost income to the employee(s) hurt in workplace accidents, or hurt in places other than the workplace while on the job.
With workers compensation insurance, payments are provided to injured workers despite whose fault it was in the accident. The payment is issued for time lost from work, as well as for medical and rehabilitation services. This type of business insurance also provides death benefits to surviving spouses and dependents.
Nearly all states require worker’s compensation insurance. The different state laws each govern the amount and duration of lost income benefits, the provision of medical and rehabilitation services, as well as how the system is administered. For example, in most states, regulations state whether the employee or employer can choose the doctor who treats the injuries, as well as how disputes about the benefits are resolved.
As a general rule of thumb, worker’s compensation insurance must be purchased as a separate policy. There are several types of commercial/contractors insurance that are sold as package policies – but they typically do not include coverage for employees’ injuries.
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