The Ins & Outs of Workers Compensation


workplace accidentWorkplace accidents occur regardless of any stringent measures set in place. Fortunately, that’s where workplace compensation insurance comes in. It’s no longer an option to have workers’ compensation. It’s a necessity.

WHAT IS WORKERS COMPENSATION?

Workers’ compensation is a type of insurance purchased by a business owner and its meant to cover employment-related injuries. The employee receives the benefits in the event of an injury on the job. In exchange, the employee gives up their right to sue your company for the tort of negligence.

Getting workers’ compensation from an insurance brokerage is considered mutually beneficial. The employer is protected from damages that could bankrupt them, and the employee gets compensated for their injury without an uncertain and lengthy legal battle.

WHAT THE WORKERS COMPENSATION COVERS

Workers compensation covers any accidental workplace injuries. The employees receive the payout regardless of who made a mistake. While this type of coverage includes most injuries, there are exemptions.

In some states, employees have to undergo alcohol and drug testing, and if found under the influence, the benefits can be revoked. Also, benefits can be denied if the employee was not on the job at the time of the injury, the injury occurred as a result of a violation of company policy, or if the injury was self-inflicted.

Payments provided by Hale & Associates help to cover the cost of wage replacement and medical care for employees unable to work for a long time as a result of the injury. The wage replacement payments are entirely untaxed even though they amount to a percentage of the employee’s average income.

BENEFITS OF WORKERS’ COMPENSATION

Getting a cover from workers compensation insurance brokers has various benefits:

Financial Stability

Businesses have set budgets, and unforeseen expenses such as payment of medical bills and loss of wages can result in bankruptcy.

Professional Access

With the right coverage, you have access to professionals who will help you through the claims process.

Workers’ compensation is a critical element of any liability and risk management plan.