Why is Workers’ Compensation Important?

Why is Workers’ Compensation Important?Your workers’ compensation policy is likely the smallest policy in your property & casualty insurance portfolio, but also one of the most important. According to the Insurance Information Institute, employers have a legal responsibility to their employees to ensure the workplace safe. But, accidents do happen, even when organizations are practicing the right safety procedures and protocols. Your workers’ compensation policy is there to compensate employees injured on the job for any medical care, rehabilitation and lost wages due to the injury. Additionally, workers’ compensation protects your business from lawsuits stemming from workplace accidents.

Still wondering why your organization needs a workers’ compensation policy? Here are four reasons to consider:

  • It’s the law
    Several states mandate you carry worker’s compensation, even if you have only one employee.  You must carry workers’ compensation for compliance with the law.
  • Workers’ compensation helps protect one of your most valuable assets – your employees
    If they are injured while working for you, workers’ compensation will take care of their medical bills and pay their lost wages while they heal. Workers’ compensation will help get your employee back to work as soon as possible.
  • Workers’ compensation is portable
    If you have workers that travel across state lines, double check that your workers’ compensation policy is written correctly. It is possible for workers’ compensation coverage to follow and protect employees that cross state lines. Since worker’s compensation requirements vary state by state, coverage can be declined if the policy is not written properly.
  • You can positively affect your premium
    A good, aggressive, active safety program can not only keep your employees safe – but will keep your costs down. The better you control accidents, the lower your experience modification and monthly workers’ compensation premium payment will be.

Since the types of workers’ compensation coverage required is different for each state, it’s very important to check your policy to ensure it’s properly endorsed for the states or countries where your business operates. Additionally, employees have different “job classifications,” and inadvertently classifying employees incorrectly can be expensive. If you’re interested in taking a look at your existing workers’ compensation policy, or adding workers’ compensation to an existing insurance policy, the AssuredPartners NL Property & Casualty team can help. To learn more or contact an agent, visit: AssuredPartners NL Property & Casualty.

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