The Basics of Workers’ Compensation Insurance

Workers’ compensation insurance gives employees medical, wage and other financial benefits if they are injured or become ill during the course of their work/job. This coverage is required in most states.

Workers' compensation

Workers’ compensation insurance helps your employees recover from work-related injuries and illnesses so they can get back to work faster. Workers’ comp benefits can help:
  • Cover medical care and medical treatment
  • Replace most of their lost wages if they take time off from work to recover
  • Provide disability benefits
  • Give death benefits, like helping pay for a funeral if they lose their life in a work accident or from a job-related illness

Workers’ comp coverage also has benefits for small business owners. For example, it includes liability insurance coverage. So, if your business faces lawsuits from injured workers or their families, workers’ comp can help pay for your legal costs.

An insurance company uses different factors to come up with workers’ comp rates. This can include your business’:
  • Payroll
  • Industry
  • Employees’ type of work
  • Claims history
The National Council on Compensation Insurance assigns classification codes based on the type of job workers do. If your business has a history of claims, this could increase your cost for coverage.
You try to run your business as safely as possible, but workplace accidents and employee sickness on the job happens often. We’re here to help your employees through their injuries and get them back to work faster. Contact an agent at Professional Underwriters today to discuss your options.
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