Workers’ comp insurance premiums might seem like an unnecessary expense, particularly for small business owners in low-risk industries, but the cost of not having coverage when an accident occurs on the job makes it worthwhile. A good workers’ compensation policy can cover four main things.
1. Medical Costs
Even the most basic workers’ comp coverage is designed to handle the injured employee’s medical costs. The policy can cover everything from transporting the employee in the ambulance to the bills for the treatment he or she receives.
2. Rehabilitative Care
Sometimes, on-the-job injuries cause ongoing problems. When this happens, extended care is often necessary. Workers’ comp insurance can cover services such as physical therapy for an injury sustained on the job.
3. Lost Wages
Employees who have been injured badly enough that they cannot return to work for a period of time still need their paychecks to pay their bills. Workers’ comp can help cushion the burden of these payments for the business owner.
4. Legal Costs
If the injured party sues the employer, a workers’ comp package that includes liability coverage can assuage legal costs. Liability typically covers legal fees and any settlements awarded to the plaintiff.
When clients have doubts about the usefulness of workers’ compensation, they should consider how expensive the alternative could be should an accident occur when they do not have coverage. A comprehensive package can cover major costs and help both employer and employee recover.