Workers’ compensation insurance, also known as workers’ comp, provides financial benefits to employees who get injured on the job or develop a work-related illness. It is required in most states for employers to carry workers’ comp insurance.
Workers’ comp insurance covers medical expenses, loss of wages, and other related costs for injured employees who become ill due to their job duties. It also provides death benefits to the dependents of employees who are killed on the job.
The specific coverage provided by workers’ comp insurance varies by state, but it typically includes the following:
- Medical expenses: This covers the cost of medical treatment, including hospital stays, surgeries, and prescription medications.
- Lost wages: This covers a portion of the employee’s lost income if they cannot work due to their injury or illness.
- Rehabilitation expenses: This covers the cost of physical therapy or other rehabilitation services that may be needed to help the employee recover from their injury or illness.
- Death benefits: This provides financial support to the dependents of an employee who dies on the job.
In most states, employers are required to carry workers’ comp insurance, and it is illegal for an employer to discriminate against an employee who files a workers’ comp claim. It’s essential for employers to carefully consider their workers’ comp insurance needs and choose a policy that provides adequate protection for their business and employees. A reputable insurance broker or agent can help employers determine the coverage they need and find a policy that meets their needs and budget.