Nearly 2 million workers were sent to the ER with work-related injuries in 2020. Another 4,700 people that same year died from injuries sustained at work.
The good news is that workplace injuries have been decreasing over time. Unfortunately, somebody makes up the statistics, so it’s important to have a plan in place in case of emergencies.
Any good plan for handling employee injuries comes with a workers’ comp insurance policy. A workers’ comp insurance policy helps cover the expenses of workers who are injured or become sick due to their work. We’ll discuss some of the different worker’s compensation policies to choose from in this article.
A Word About Business Insurance
Before discussing workers’ compensation insurance, we should discuss business insurance. Business insurance is a catch-all term for certain insurance policies related to commercial enterprises. Getting a workers’ comp insurance quote often means getting a business insurance quote.
In addition to workers’ comp for businesses, it’s important to be careful when shopping for business insurance as a whole. This gets much easier when you know what not to do.
Workers Comp vs General Liability
Two types of policies that people often confuse are workers’ compensation and general liability insurance. Though the two are similar and are both important for protecting your company, there is one key difference. Workers’ comp covers expenses for when employees are injured, while General liability covers the injuries of customers and other citizens.
Since the two cover different situations, they also function a bit differently. General liability usually pays out a sum to help deal with the injuries or damage, as well as any necessary legal fees.
Workers’ compensation insurance covers the costs associated with the injuries sustained. Its purpose is to cover the worker’s medical bills and any lost wages they suffer while they’re out of work. If the worker in question is rendered disabled or even killed by their injuries, the insurance will also pay out a large amount to cover associated expenses.
State Laws
To a certain extent, the types of workers comp insurance available will depend on your location. Different states have different laws on the books for how much worker’s compensation insurance a company must have. In some states, there are even laws that dictate where you have to get your workers’ comp insurance.
Every state also has different consequences for not carrying workers’ comp insurance when necessary. In California, for instance, employers can face fines of $100,000 and a prison sentence of up to a year.
Some states have even set up state-run insurance programs and require employers to buy from them. These states are Ohio, North Dakota, Washington, and Wyoming.
What to Look for in a Workers’ Comp Insurance Policy
There’s a lot to consider when looking for a good workers’ comp insurance policy. We’ve talked a bit about workers’ comp, and how to navigate it in the paragraphs above, but you can never be too prepared.
If you want to know more about workers’ comp insurance or are in the market for business insurance please look around our site. We encourage you to contact us if you have any questions or would like a quote. We’re more than happy to help you find what you need.