Workman’s comp insurance is a type of insurance purchased by employers that cover work-related illnesses and injuries. It is often referred to as “workers comp.” Workers compensation is often state-mandated through a program that requires compensation to works injured or disabled while doing their job. In most cases, employees are entitled to workers comp regardless of who was at fault for the injury.

Incidents Covered

Workman’s comp insurance is designed to cover injuries that result from either an employee’s or an employer’s carelessness. Although the range of covered injuries is broad, there are limits. For instance, alcohol and drug tests might be mandatory for an injured employee. Benefits may be denied if the individual is found to have been under the influence when the injury occurred. Self-inflicted injuries may also be denied.

Expenses Covered

Typically, workers comp insurance covers

• Costs of retraining
• Death benefits
• Immediate medical care
• Long-term medical care
• Lost income
• Permanent injury compensation

It also may provide protection to employers from lawsuits related to the injury. Many times, benefits do not cover pain and suffering. When it comes to lost wages, most policies cover 2/3 of the worker’s average wage. There are limits to this coverage as well.

Workman’s comp insurance is benefits both employees and employers. Employees don’t have to worry as much about getting hurt on the job and employers don’t have to live in fear of lawsuits.

Workman’s comp insurance is designed to protect employees who are injured on the job. However, it offers several benefits to employers as well.

1. It helps keep employers and employees on the same side.

Without workman’s comp insurance, employers almost always end up in an adversarial position with their employees. In this situation, injured employees have to sue to get compensated for the associated expenses. When employers purchase a policy to protect their workers in case of injury, employees are less likely to resort to litigious behavior to have their needs met.

2. It saves money.

Workers’ compensation insurance eases employers’ financial burden. It not only covers employees’ approved medical expenses but also pays temporary disability if their injury requires them to take time off work. This gives the employer the financial freedom to hire a temporary replacement or offer current employees overtime to cover the injured employee’s workload until he or she can return.

3. It can improve workplace safety.

Insurance providers have a vested interest in reducing the number of claims they receive. To that end, many workman’s comp insurance companies offer safety education programs for their members. When employees are educated and safety protocols are improved, the workplace becomes safer.

Workers’ comp is helpful to both employers and employees alike. It gives employees the comfort of knowing they are covered if an accident happens, and it empowers employers to keep their business running well.