Workers’ Compensation Basics: What Business Owners Need to Know

If you own your business, there are a lot of different insurance coverages that you need to consider. One of these insurance coverages is workers’ compensation coverage. Before shopping around, this is what you need to know about workers’ comp coverage.

What Workers’ Compensation Insurance Is

In most states, employers must carry workers comp insurance for employees. The purpose behind workers’ compensation coverage is that it pays for medical care and lost wages if an employee suffers an injury while on the job. These are injuries that occur due to work, rather than injuries that may occur due to a hobby in a person’s personal life.

Why Workers’ Compensation Insurance Is Necessary

When you have workers’ compensation insurance, your business is safe from lawsuits from employees if they are injured while performing an occupation related activity. Without workers’ compensation, if your employee was injured, he or she could file a lawsuit against you. When you have coverage, the employee usually cannot file a lawsuit. There are risks to employees in all industries, it makes sense to have coverage.

When it comes to business insurance, there are a lot of different coverages that you need to be aware of. The experts at explain that workers’ comp insurance is one of the more important coverages for all companies.