Why Your Employees Need Workers Compensation Coverage

Published
03/30/2015 by Edirex

First of all, it’s not an option 99% of the time. Workers Compensation is a state-mandated program provided by insurance companies, which covers your employees who might suffer a work-related illness or injury. Every state passes its own laws and establishes local programs to meet the federal requirements.


After a waiting period, locally determined, your employees will receive a stipend (approximately 2/3rds of their regular pay) which is meant to help replace a portion of their now lost income. Workers Compensation also takes care of the medical and hospital bills which are required to diagnose and treat the employee. Rehab and retraining (if they are unable to resume their prior duties) are among the additional benefits.


The Workers Compensation laws are meant to protect both the employee, and the employer - reducing the possibility of a company being sued or of a worker losing their income and not having medical attention.


Certain exceptions apply, where an employee’s injuries are suffered due to their own negligence or cause. These might include:


Injuries took place while employee was intoxicated or under influence of drugs.

Injuries were incurred after initiating a physical confrontation.

Injuries were incurred during the commission of a crime.

Injured while not on the job, or while breaking company policies.


As the employer, your obligation to carry Workers Compensation coverage may be dependent on several factors, depending on the state in which you are doing business:


Type of business

Type of work being done by workers

Number of workers


There are also exemptions for farm or casual workers, again dependent on state laws. There are certain regulations governing domestic employees as well. For full clarity, you might want to contact your state’s compliance department which can be found on the U.S. Department of Labor website.


If an employee should sustain an injury on your jobsite or place of business, always collect as much information as possible, including witness statements, photos, security video tapes, etc. Call 911 for proper care and transport and make certain you have done everything to ensure their health comes first. You should also take steps to secure the area if there are damages which might cause other employees or visitors any harm.