Understanding Workers Compensation Insurance
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Working as a contractor, we all know that no matter how many precautions you take, no matter how careful you are there are things that can go wrong. We don’t like to think about it. We don’t like to acknowledge it. But, it happens. And when it does it hurts. Your business could have a difficult time replacing that employee and you might end up wondering whether or not you could have done more to protect your employee. With workers compensation, you can set some of those worries aside and instead focus on your business instead of worrying about how you are going to avoid litigation for not providing your employee with workers compensation insurance.

Workers Compensation Insurance – A Brief Overview

Workers compensation insurance is required in all states so, if you don’t have it, you’re definitely going to want to think about procuring it. This policy is designed to protect your employees in the event of an on the job injury (either from repetitive action or a sudden trauma). Their medical bills will be covered under the insurance policy ensuring that neither they, nor you, have to worry about paying those bills. Injured employees will also be provided with the following benefits.

  • Permanent and temporary disability
  • Death benefits

Permanent and Temporary Disability

Under workers compensation insurance your employees that are injured to the point where they cannot return to work (either permanently or temporarily) will be provided with some of their former income. Two-thirds to be exact. That income will continue until they can either return to work or, until they reach retirement age.

Workers Compensation Insurance for Employers

In some cases, employers can be found liable for the injuries that their employees suffer (often due to neglect). So, as an owner you may need an additional policy to ensure that you do not face any additional litigation. Employer’s liability insurance will keep you out of trouble and protect you from third party claims. This guarantees that you can operate your business without having to worry about lawyers and other legal reps (though we hope you do take the proper precautions).

Workers compensation insurance is a necessary part of any contractor’s insurance portfolio. If you have any further questions please feel free to give us a call at 1-800-649-9094. We look forward to hearing from you and stay safe!