If you or your company employs people, then you need workers compensation insurance.
It will not only protect your employees if an accident occurs on the job, but will help to protect you and your team from paying medical costs out of pocket.
It also helps to protect injured or ill employees that can’t work for a period of time by providing compensation and sometimes disability benefits.
Carrying workers compensation insurance is essential for any employer, even if your employees don’t seem to do anything particularly hazardous (think of your standard office job).
It’s especially important for construction business, restaurateurs, jobs that require driving company vehicles, and any other job where employees run a significant risk of injuring themselves.
As an employer, you need to carry workers compensation insurance and post your policy info in a clearly visible place to ensure that your team is aware of their coverage and rights.
What is Workers Compensation Insurance?
Workers compensation or as it is more commonly referred to, “workers comp” is an insurance plan or system of benefits that starts from the moment a job begins or a work contract is signed, and it covers injuries incurred while on the job and associated medical costs.
Various types of injuries and even job-related diseases are covered under workers compensation, including injuries caused by consistent repetitive movements required by the type of work being performed, strokes and heart attacks caused by work, and other physical problems that occur as a direct or indirect result of work.
What Does Workers Compensation Insurance Cover?
Workers compensation insurance protects your business and your employees in four key areas.
It covers medical bills incurred due to injuries sustained on the job.
Workers compensation insurance also covers things like compensation and disability benefits for the time that an employee is unable to work due to an injury or other health problem that happened in the course of their job.
It also covers rehabilitation and retraining in case that employee cannot return to work in their original role due to an injury that occurred while they were performing the duties of their job.
The duration of coverage and the amount of compensation involved varies by state.
Finally, workers compensation covers death benefits for surviving spouses and family members if the unthinkable happens and an employee dies on the job.
Workers compensation insurance also can protect your business from the costs of a lawsuit brought by an employee or employees if they sue for damages as a result of an injury that occurs while they are working for you.
This potentially includes the court costs, attorney fees, and any settlement you may come to (but not always, depending on the nature of the suit and the reasons behind it).
Why Do You Need Workers Compensation Insurance?
If you employ people full time, then you definitely need workers compensation insurance for them.
If you work with contractors or other business owners, you also need workers compensation insurance.
As an employer you are required by law to buy workers compensation insurance (or get permission to self-insure, which can be more expensive and complicated depending on your jurisdiction) and post a notice somewhere highly visible in the workplace that explains your employees’ rights on the Workers Compensation Act along with listing your insurance provider, policy number, and their contact info.
You also need to keep detailed records of work related injuries and report any accidents.
You should also be aware that as an employer, you cannot charge or bill employees in any way for workers compensation insurance and associated benefits, or discriminate against an employee for exercising their rights to workers compensation under the law.
This includes harassing, firing, or refusing to rehire someone based on a previous workers compensation claim.
How Do You Choose the Right Type of Workers Compensation Insurance?
It all depends on the sort of business you have and the type of labor your employees perform.
However, basic workers compensation insurance is an essential for all employers.
Not only will this help protect your employees in case they get injured on the job, workers compensation or workmans comp will protect the business that you’ve worked so hard to build in the case of an accidental injury or worse.
What Type(s) of Workers Compensation Insurance Do You Need?
The type of workers compensation insurance that you need depends on the sort of business you have and the work that your employees perform.
Of course, you should always check with your insurance agent if you have any questions about the specific type of workers compensation or any other type of employer insurance you may require.
What Other Types of Insurance Are Related to Workers Compensation?
There is a wide variety of types of insurance that employers are required to carry, depending on the industry and the various roles that the employees have.
There are a variety of requirements for workers compensation and they do vary by state, so be sure to look up your specific state’s regulations before you purchase workers compensation insurance for your company as well as discussing your unique business and needs with your insurance agent.
As an employer, it is your responsibility to make sure you have adequate workers compensation coverage for your employees.
The requirements for workers compensation insurance coverage vary by state.
workers compensation generally has to be purchased as a separate policy from other types of business insurance policies, although it may be sold by the same brokers who sell in-home business and business owners package policies.
Contact the ASCO Insurance team to learn more about a policy on Illinois workers compensation.
