Workers Compensation Insurance

If that sounds like a luxury to you, keep in mind, it's probably a good thing for your business. Imagine having to pay for a slip-and-fall accident out of your business checking account.

It’s a good thing for you and your employees.

Workers comp insurance may also protect you from being sued by employees for workplace conditions, when a court finds your company liable in causing an injury or illness to your employees.

What if it’s caused by employee carelessness?

Under normal circumstances, fault does not matter in a workers compensation claim. And each state has its own workers compensation system, which is a mandated program to compensate employees who are injured in a workplace accident or rendered ill because of the job.

It’s designed to ensure payment by employers for some part of the cost of injuries, or in some cases, of occupational diseases, contracted by employees in the course of their work.

Workers compensation basics

Since workers comp insurance typically only covers injuries or illnesses when they occur as a result of duties performed on the job or while at work, the scope of the coverage of the policy is limited to duties performed by employees.

Injuries that may be covered by workers comp insurance include lifting heavy equipment, slipping on a wet or oily surface, or sustaining injury, due to fires or explosions.