Business Insurance 101: Worker’s Compensation

Person with an arm cast signing a work injury form
Business Insurance 101: Worker’s Compensation

The heart of your company is its workforce. These people carry out all of your strategies and daily tasks in order to run a successful business. In fact, if you ask any successful business owner what they believe to be the three most important factors for success, they are almost certain to respond, “People, Process, and Product,” with People always ranking highest. Employee protection against injury or illness is not just a wise idea given how essential they are to the success of your company, it is also required by law in the majority of states. This is where worker’s compensation insurance comes into the conversation.  

“What is Worker’s Compensation Insurance?”  

 Worker’s Compensation Insurance by design will help protect your employees and your business should a staff member be injured or fall ill while on the job. The coverages of a worker’s compensation policy include medical treatments, ongoing care/ therapies, Lost wages, funeral costs, and disability benefits.  

Some recent worker’s compensation claims include: 

  • A Commercial Janitorial company employee got sick from inhaling chemicals all day and needed medical attention. 
  • A retail employee slipped and fell breaking his leg while restocking inventory
  • A warehouse manager had an unstable stack of packages fall on him requiring a trip to the emergency room 
  • A plumber was burned while repairing a defective water heater resulting in burns that need medical attention 

As you can see, workplace accidents and illnesses can occur anywhere and at any time. By providing your employees with the proper protections, you can spare your company the high medical costs you would otherwise be responsible for. This coverage becomes one of the more crucial parts of your insurance portfolio as a business owner when you consider the exponentially rising costs of medical care over the past decade. 

It is important to note the distinction between workers’ compensation and disability insurance must be made. Disability insurance, which pays for disabilities that can develop outside of the workplace, is distinct from workers’ compensation, which pays for accidents sustained on the job. While both play very important roles in protecting your individual and company livelihood, they are two separate policies.  

Also, there are instances of work-related injuries where workers’ compensation coverages will not cover. These include the following.  

  • Employee intoxication resulting in injury.
  • Common illnesses, such as the flu or a cold.
  • Pre-existing conditions before performing job duties. 
  • Intentional Acts/Fraud. 
  • Incidents that happen at company-sponsored recreational events (Happy Hour, Company picnic).

How can I purchase Workers’ Compensation Insurance for my business? 

 Contacting a knowledgeable independent agent is the first step in starting the process of getting workers’ compensation insurance. An independent agent will have access to several markets in addition to the rest of your business insurance portfolio to guarantee that you get the best possible fit for your particular sector and business type. Also, an expert agent will be familiar with the many laws that each state has regarding authorized workers’ compensation coverage.  

Contact any of the experts at The Staples Agency when you are ready to talk about protecting your company and employees with a workers’ compensation policy. We would be pleased to assist you. Our crew is equipped with Certified Workcomp advisors that have made it a priority to be thoroughly educated on the topic. We will be able to help you not only identify the ideal fit but also with advice on decreasing your risk of employee injury and a workers’ compensation loss.

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