Workers' compensation insurance covers your employees' medical and disability expenses as a result of work-related illness or on-the-job injuries. Included in the worker’s comp policy is employers’ liability insurance. This pays for legal fees and pays settlements in the event of a law suit.
In most states, businesses that have employees are required by law to carry workers' comp insurance. It may be frustrating, but it is very beneficial to carry workers compensation regardless of if it required or not.
Workers' comp will pay for doctor's visits, medication, tests, or hospital stays that are directly related to an accident or injury that occurred while your employee was at work. If your employee could not work due to work-related injury or illness, workers’ comp insurance would reimburse your employee for a portion of their lost income.
If you didn’t have workers’ comp you would have to worry about these costs out of pocket. Additionally, the employment liability portion or workers’ comp protects you from paying lawyer fees or settlements from a law suit.
For more information, contact TriState Business Insurance.