A Guide To Workers Compensation Insurance

What Is Workers Compensation Insurance?

Why Your Business Needs Workers Compensation Insurance

  • It’s the law across most states. In fact, Texas is the only state that does not require employers to purchase workers’ compensation insurance.
  • It helps a business avoid serious financial harm. The amounts that an employer could be required to pay for potentially limitless tort liability for industrial injuries is staggering. A death claim could exceed millions of dollars and bankrupt an uninsured employer.
  • It gives employees a safety net when disaster strikes. According to U.S. Bureau of Labor Statistics, private industry employers reported 2.8 million nonfatal workplace injuries and illnesses during 2020. In addition to helping employers cover risk, workers’ compensation insurance helps employees too.
  • It protects a business from civil and criminal penalties. If a business fails to carry workers’ compensation insurance, it could face serious repercussions. These vary by state and can range from fines of up to $100,000 and up to seven years in jail.
  • It’s the right thing to do. Workers’ compensation systems arose as one of the great political compromises of the Progressive Era—injured workers gave up the right to sue employers for personal injury damages in return for less generous but more certain benefits. Workers’ compensation insurance holds employers to the terms of The Grand Bargain.

What Does Workers Compensation Insurance Cover?

What Benefits Do Injured Workers Receive?

  • Primary care physician medical care
  • Specialist medical care
  • Hospitalization needs
  • Medical tests
  • Prescription drugs
  • Physical therapy
  • Rehabilitative care
  • Lost wages
  • Temporary disability benefits
  • Permanent disability benefits



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