Accidents happen – it’s part of life. Whether the accident warrants a quick trip to the emergency room or a lengthy hospital stay, medical expenses are involved. When the accident occurs on the job, it’s the employer who picks up the tab. Unless the business is one of the exceptions, Workers Compensation Insurance is not an option!  Why?  As a rule, a company with five or more employees is mandated to purchase Workers Compensation Insurance to cover medical expenses, permanent disability, and a portion of the injured employee’s wages. On-the-job injury resulting in the death of an employee is also covered; a death benefit is paid to the worker’s beneficiary. Companies can’t afford not to purchase Workers Compensation Insurance: under the law, a company who pays out Workers Compensation is protected from civil lawsuits regarding injuries on the job.

Still not convinced of the need for Workers Compensation Insurance?  For companies who violate the mandate, the law is quite unforgiving: it’s a Class A misdemeanor not to provide coverage for workers, with severe monetary penalties.  Repeated violations upgrade to a Class D felony. Termination of an employee who is injured while working and/or who files a Workers Compensation claim is also illegal. To further comply with the law, information regarding the insurance carrier and contact persons should be in a prominent place so that employees can readily access the information on short notice. Providing immediate medical help and calling both the insurance carrier and the Division of Workers Compensation are also compulsory. 

The Division of Workers Compensation of the Department of Labor and Industrial Relations is the administrator of all things related to Workers Compensation.  This agency makes certain that companies acquire coverage and handles false claims as well as disputes, besides the details of accidents from the insurance companies and the company where the injury occurred.

Workers Compensation Insurance is available through private insurance companies in most states in the U.S.  A company that acquires Workers Compensation Insurance is saving money in the long run. Insurance costs are well worth the price paid if an employee is injured while working. Policies that cover medical care and death benefits protect both employers and employees and provide the assurance needed that financial compensation is available should an accident happen in the workplace.