As an employer, you have a responsibility to the people who work for you. In fact, certain laws are in place in most states that require employers to provide financially for their employees who become injured on the job.
Intended to protect a company’s employees in the event of an accident occurring during the workday, worker’s compensation insurance is also designed to help the employers pay for the benefits given to the injured party. It is not health insurance, despite the fact that it is designed to help compensate an employee who has been injured on the job and is unable to work.
While many states require an employer to obtain worker’s compensation insurance, it is a good idea to get it even if your business is located in a state where it isn’t mandatory. This is particularly true for businesses in which risk is part of the job.
You might be wondering why your business needs workman’s compensation insurance if no one has ever been injured on the job. The truth is that an employee can still become inured even if a company has every precaution put into place.