Much like liquor liability, Workers’ Compensation Insurance is required by most states, but each state is in charge of their own workers’ compensation program regulations. Generally speaking, an employer’s responsibility to provide coverage may depend on the number of employees at the business, the type of business, and the type of work they are doing. In 2015, American employers paid out $61.9 billion in workers’ compensation benefits; let’s hope they all had coverage so that didn’t come out of their pockets.
What is Workers’ Compensation Insurance?
Workers’ Compensation Insurance protects a business and its employees by providing the employees’ benefits if they get a work-related injury or illness. These benefits can cover missed wages, medical expenses, vocational rehabilitation, and death benefits. For the employer, it helps cover legal costs if an injured employee or their family sues the business. Workers’ compensation is applied regardless of who is at fault, whether it’s an employee, the employer, co-workers, or even customers. Although it is not required by some states it is highly recommended to have coverage and plan for what could happen, instead of having to do damage control when the unplanned does happen.