WORKERS’ COMPENSATION
Protect Your Business
with Workers’
Compensation Insurance
W
orkers’ compensation (WC) insurance is
required for businesses nationwide. The WC
statutes are intended to eliminate the need for
litigation between the employer and employee
when a workplace injury or fatality occurs.
Each state has its own set of laws for privately owned businesses
regarding the circumstances for receiving benefits, the duration of
benefits, and extent of benefits that a worker may receive.
COVERAGE BENEFITS BOTH THE EMPLOYER AND EMPLOYEE
Businesses of any size can protect themselves and their employees
with workers’ compensation insurance. This type of insurance
can save small businesses in particular
from devastating financial losses due to
job-related injuries. It is estimated that
the average workers’ comp claim is over
$36,000. For a start-up operation,
this can be a catastrophic financial
event. It is not unheard of that a small
business had to shut down operations
due to its inability to pay for an injured
worker’s claim.
Employees, on the other hand,
are also protected. They
have the assurance that
if they have an injury
on the job, their health
and well-being are
going to be protected.
Employees who are
not protected by
workers’ comp can
become injured,
and if they lack
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health insurance altogether, this can be life threatening for them.
TYPICAL COVERAGE OFFERED BY WORKERS’
COMPENSATION POLICIES
The typical policy will cover employers/employees for injuries
an employee sustains on the work premises or anywhere the
employee is acting within the scope and course of his or her
employment. A common claim is death caused by traffic accidents
that took place while the employee is in a vehicle for work
purposes. It does not matter whether the employee was driving
a company vehicle or the employee’s own vehicle. However, no
coverage is available while an employee is driving to and from
work.
Loss of wages is covered for the duration of the injury before
the employee returns to work. Some states have a limit on the
number of weeks the employer must cover the employee.
In the event of an employee’s death, workers’ compensation will
cover funeral expenses and provide benefits to the deceased
worker’s family.
One of the most often asked questions is, ”How many employees
need to be working in a business before the state requires the
owner to buy workers’ comp insurance?” The answer varies by
state and, in some cases, by the type of business . In most states,
however, businesses that have at least one employee are required
to carry this type of insurance.
Are you concerned with protecting your business from liability
due to workplace injuries? Talk to one of our experienced
professionals and find out how you can safeguard your future and
that of your business with the right workers’
compensation policy. Get in touch with us
at Nesbit Agencies today. +
Jeff Staloch has over 11 years of experience in the insurance business,
primarily focusing in the areas of commercial risk management and
agri-business. Jeff currently works closely with his team at Nesbit
Agencies to help develop risk management plans for the manufacturing,
construction and agriculture industries. Jeff’s favorite part of his job is helping
his clients manage risk so their business can thrive. He can be reached at
[email protected] or 507-625-5558
BY: JEFF STALOCH
NESBIT AGENCIES
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