Why Workers' Compensation Insurance is Important
Employers are legally obligated to take reasonable care to ensure their workplaces are safe. But accidents happen—and that's when workers' compensation insurance provides coverage.
2 Types of Coverage
- Benefits for injured workers. This benefit applies regardless of who is at fault for the injury or illness. This is subject to state law and may include medical expenses, lost wages and rehabilitation costs.
- Protection for employers who are sued for damages. This coverage applies to employers being sued for employment-related accidents or disease. The employer must be found legally responsible for the employee's injury or illness for benefits to be paid under this portion of the coverage.
Injuries are not limited to the actual workplace. For example, if an employee is in a company car or their personal vehicle for work purposes and sustains an injury, coverage could be provided under workers' compensation insurance. (This doesn't include driving to and from work.)
For information about requirements in your state, contact one of our agents to discuss your specific situation.
When you hire an employee, many states require you to have workers' compensation insurance to cover work-related injuries or illnesses. Whether or not your state requires workers' compensation, you should still consider this valuable coverage.