Workers’ compensation insurance for small businesses provides coverage for specific workplace and employee injuries and illnesses. For example, the employee may not be involved in an accident to qualify for coverage. In addition, workers’ compensation insurance covers diseases caused by exposure to certain chemicals or particles. The rules vary from state to state.
Covers Injuries Sustained in the Course of Employment
Workers’ compensation is a form of insurance that covers injuries sustained on the job. It can also hide specific illnesses or diseases that can occur because of the repetitive nature of a job. In addition, these policies typically cover diseases caused by exposure to toxic chemicals. However, the specifics of benefits vary by state.
If an employee’s injuries occur outside of the workplace, they may not be covered by workers’ compensation insurance. For example, a pizza delivery driver who takes an unauthorized detour to the grocery store may not be covered for a slip-and-fall accident in the parking lot. However, an injury that occurs in the course of employment will be covered under workers’ compensation as long as it happens during the employee’s regular working hours and while performing the task assigned to them.
Workers’ compensation may cover injuries suffered during a work-related lunch break. However, workers’ compensation will not cover damages during a lunch break or while working outside the workplace. In addition, an employee unable to work due to an injury may be covered if the injury results in loss of income. Additionally, the benefits of workers’ compensation extend to mental injuries if they occur in the workplace and are caused by the job.
A traveling salesperson may be covered if the accident occurs on the way to a first client meeting. Another example is the executive assistant picking up dry cleaning for the president of a company while driving to the office. For both cases, the activity must occur on the employer’s property during business hours.
It Provides Peace of Mind
Workers’ compensation insurance for small businesses is integral to a business owner’s overall business insurance strategy. The right policy can save your company a significant amount of money in the event of an accident. It also gives you peace of mind since you will know that your employees are covered if an injury occurs.
Workers’ compensation insurance can also protect you from costly lawsuits that result from an employee’s accident. Not only can one case cripple your business, but a series of lawsuits could leave you bankrupt. Keeping worker’s compensation insurance on hand is the best way to protect your company from financial setbacks and avoid fines.
Small business owners also need to consider the financial cost of medical insurance for employees. Many are concerned about the cost of premiums. However, it’s worth considering that medical care is the most common employee benefit. It can make employees feel more secure and productive. Moreover, it can make them stay longer in your company.
In addition to providing financial coverage for medical expenses, workers’ compensation insurance also covers lost wages in the event of an accident. Most insurance companies offer this type of coverage but check with your insurance agent to ensure you’re covered.