What Business Owners Need to Know About Workers’ Comp Insurance

Despite the fact that you go to great lengths to keep your workspace safe, accidents do happen. When those accidents happen it can get expensive. Worker’s Compensation insurance is a way to protect yourself and your company from being held responsible for these costs.

What is Workers’ Compensation?

Workers’ compensation is an insurance policy that will kick in in the event that you have an employee who is injured on the job. This policy will pay for medical expenses and wage replacement while the employee is out of work. It will also pay for any liabilities that may result from a lawsuit. 

Why Do Employers Need This Insurance?

Employers are required by law in most states to carry workers’ compensation insurance. In addition to being required by law, this is a sound investment in the financial health of your company. Should an employee sustain a serious injury that would require extensive medical bills and much time out of work, you could be held liable through a lawsuit to pay for these expenses. This could put your entire company at risk if it were very costly. Paying the workers’ compensation premiums is much more affordable than being slammed with a hefty lawsuit. In addition, many workers view a good workers’ compensation plan as part of the benefits of being your employee. This tells them that you care about your employees and want to protect them. 

Is Everyone Required to Have This Insurance?

No, not all companies are required. Most states base their requirements on how many employees a company has on staff as well as other criteria. 

If you would like to learn more about workers’ compensation insurance, please contact our friendly staff at CO Insurance Specialist Wheat Ridge, CO.