Workers’ Compensation Explained

If you are a business with employees, you probably need to invest in workers’ compensation insurance. Workers compensation insurance companies can provide you with the coverage you need to protect yourself and your employees.

The Beginnings

Workers’ compensation regulation is mostly under the jurisdiction of the states. This means laws can vary from state to state. Still, the overall structure and operation are similar. Before 1911, employees would have to seek out compensation via the legal system. This made it very difficult for individuals to obtain compensation for injuries as a result of work. It also exposed employers to potentially devastating lawsuits.

Modern Laws

Today, many states have a no-fault system. This means that workers can receive benefits even if the accident was there fault. There are limits to coverage, nevertheless. This system also makes costs more affordable and predictable. Benefits to workers often include lost wages, death benefits, long-term care, immediate medical attention, vocational rehabilitation and other medical expenses.

These expenses could easily bankrupt a small company that lacked insurance. Workers compensation insurance companies provide coverage that meets a state’s regulation. This allows businesses large and small to rest easy.

Workers compensation laws are for the most part regulated by individual states. If you run a business, make sure to review regulations to make sure you have the appropriate coverage. You can also talk to an insurance representative if you have any questions.