What is Workers' Comp?

Workers compensation, also known as “workers’ comp”, is designed to protect individuals who become injured while on the job. The intent is to provide the worker with monetary awards to cover the loss of wages caused by the accident that occurred. It typically provides at least partial wage replacement and medical benefits to the employee while he or she is away. In some cases, it may also compensate the worker for any permanent physical problems that he or she has suffered from as a result of being injured. In exchange, the employee gives up the right to sue the employer for negligence or pain and suffering. This system therefore benefits both the worker and the company, minimizing legal liability while still providing needed financial assistance to the employee during his or her time of need.

Workers’ Comp: Critical for Every Business

As it relates to insurance, workers compensation is a state-mandated program; that is, you as a business owner must provide your employees with workers’ comp coverage. Some industries have a greater risk for employee injuries, like construction or other physically exerting types of work. However, the chance of injury exists in every workplace, so it is critically important that you choose your insurance carrier carefully. The right insurance carrier can help you not only process claims faster and more efficiently, but also give you advice on how to minimize your chances of having accidents occur in the first place.


photo credit: ILO in Asia and the Pacific cc