Worker's Compensation is a federally mandated insurance to provide employees protection against injuries at work.
As a business owner, you are held responsible if an employee of yours gets hurt while performing their duties, for any reason, including equipment malfunctions. The legal obligations differ per state. Some states require that employers purchase the policy directly from them (North Dakots, Ohio, Wyoming and Washington a/k/a Monopolistic States), while all other states allow private insurance companies to compete for the business.
Worker's Compensation compensation protects employers by paying the various costs associated with injuries sustained by their workers due to sickness or injuries that occur at work.
Some of these benefits are:
Medical coverage for on the job injuries, or job-related sicknesses and illnesses.
Lost wages during any recovery times for permanent or temporary disability.
Court costs and other related responses.
Many insurance companies providing a policy may require that specific safety precautions are put in place. These precautions may pertain to specific ergonomic equipment and proper training of your personnel on how to use this equipment. Apart from that, there are always clauses in a contract that mention that it is invalid if certain conditions are not met.
You should always maintain safety controls on your premises for things like slippery floors, objects that may fall, objects in the way that may cause someone to trip/fall, and in general, a clean and healthy environment to work in. This insurance does not protect you from the lost time of other employees who are standing around watching an injured co-worker receiving first aid. Safety can promote more long term work efficiencies.
The overall cost of worker's compensation insurance can vary depending on a few factors.
It's based on your industry, the payroll for the employees you have separated by certain job classifications, state/regional laws, and other criteria. Call Links Insurance Services for help choosing the ideal policy!