Regardless of the size of your business, whether a startup or an industry giant, as a CEO or a business owner, you have the responsibility of protecting the company against lawsuits, including litigious workers. Generally, the worker’s compensation insurance is for workers. It offers support with compensation or wage replacement and medical-related benefits when a worker gets injured while on official duty.
Though this insurance policy is designed to protect employees, it also offers protection for companies. It serves as a shield for business from various lawsuits filed by workers who claim that you or another employee within your organization was responsible for an on-the-job injury. Fisher & Talwar, one of the top law firms in Los Angeles, asserts that worker’s compensation insurance can cushion your business from costly personal injury lawsuits from various accidents such as slip and fall. Here are other ways this insurance plan can protect your business.
Protects a company from fines
For business startups, no matter the industry, worker’s compensation insurance can protect the entity from penalties. In all states across the country, with the exception of Texas, every business is required by law to have this specific type of insurance plan.
According to the law, if an employer fails to acquire the worker’s compensation cover, they’re subject to a predetermined administrative fine and sometimes potential criminal liability. These employees may also be subject to premium penalties and probably ordered to cease business operations until they get this insurance cover. Besides, the employer can be held financially responsible for any cost arising from various work-related injuries.
With the right worker’s compensation policy, your business can always enjoy protection from fines.
Limits both legal and financial liability
Workers get extensive compensation cover, including vocational training, medical cover for illnesses or injuries, funeral expenses, and income replacement. This insurance policy also covers death benefits in case the worker dies while on official duty. In return, workers are prohibited from suing their employers for various injuries that might happen while on official duty. However, employees can sue in case of gross misconduct and negligence that results in a worker’s death.
If your business has the right level of insurance cover, it cannot be held responsible for the following;
- Lost wages
- Medical-related expenses
- Fines for not having the right insurance cover
- Damages incurred by an injured worker. Some of these damages include punitive damages, pain and suffering as well as the loss of life enjoyment.
Can get employees back to work easily
According to business analysts, worker’s compensation insurance ensures that employees get the right medical care and the level of rehabilitation they need to get back to work. This is because whenever an injured employee’s recovery needs are fully met, they’re more likely to remain in their current job with the organization. Thus, a worker’s compensation coverage is a win-win for both the organization and the employees. Now you understand how worker’s compensation insurance can protect your business.