Workers' compensation insurance, also known as workman's comp or workers' comp, provides benefits to the employees if they suffer work-related injuries or illnesses. This insurance helps pay for medical care, wages from lost work time and more. Premiums for workers' compensation coverage are determined by the employer's payroll and the types of tasks performed by its employees.
Workers' compensation insurance is required by law in practically every US state (except Texas). However, each state sets their premium amounts and benefits based on their economy and the risks their businesses face. Thus, based on the location of the business, laws regarding workers’ comp can be different. In addition, employers may be required to pay extra if the company has had a particular number of previous claims or if its employees work in a dangerous environment.
What Workers’ Comp Doesn’t Cover
Depending on your state laws, workers’ compensation policies don’t usually cover an injury or illness that:
- Happens as a result of a fight that your employee started
- Is intentionally caused by your employee
- Happens to an employee who is intoxicated
- Is merely emotional and has no physical trauma
- Occurs during your employee’s commute
Workers' compensation will not protect you if an employee sues your company for:
- Discrimination
- Malicious intent
- Gross negligence
- Failure to promote
- Wrongful termination
You are in Good Hands
Findalowrate Workers' Compensation insurance protects your employees and your small business. Buy online now!
