In exchange for the employer paying for Workers’ Comp, employees receiving the benefit relinquishes their right to sue their employer. Given that a new injury occurs every seven seconds in the workplace globally, any business, including start-ups, needs to prioritize Workers’ Comp as a cost of doing business.
Some small businesses assume that it is only necessary for occupations with high risks such as the construction or healthcare industry. Unfortunately, any worker can be injured by slipping on a stairway or develop physical health problems by having to sit behind a desk an extended period of time.
What does the workers’ compensation insurance cover?
According to Thomas Law Offices, every business has the mandate of protecting their employees. Workers’ Comp is one of the primary ways to protect both the business and its employees as well as give a sense of security.
Even though Workers’ Comp is a large labor expense, it pales in comparison to having to deal with potential lawsuits from employees while having to also pay for salary and medical costs.
Workers’ compensation insurance covers several areas like medical treatment as in the cost of treating injuries and diseases, loss of limbs, travel expenses when going to seek hospital services, cost of hospital stay, and cost of physiotherapy. It also covers the cost of enrollment into a rehabilitation program.
Your employee should not lose their job as a result of the injury. If they cannot go back to their original role, then as an employer you can switch their position.
The insurance also covers for lost wages in that for the period that the injured employee cannot work-they can get up to 2/3 of their salary. It also covers liability if a lawsuit is filed against your company or a co-worker by the injured employee.
However, it does not cover injuries incurred outside work, those that are self-inflicted, or as a result of negligence, damages incurred while deviating the company’s policy, and for general suffering and pain. Workers’ Comp has been expanded to cover psychological stress and injuries sustained outside work but while on work-related activities such as sports.
While Workers’ Comp can take a big bite out of your budget, it is important to have for protecting both the employer and employee, as well as be used to recruit and retain good employees. As your company grows, Workers’ Comp becomes even more important!