What is Workers’ Compensation?

What is Workers’ Compensation?


Workers’ Compensation is a form of insurance held by businesses. When a business has Workers’ Compensation Insurance they protect not only their business, but they protect their employees in the case of an accident. 


What Does Workers’ Compensation Insurance Do?


When someone is injured, they may encounter large medical bills, recovery costs and may miss work resulting in lost wages. Workers’ Compensation ensures that if an employee is injured on the job through no fault of their own, they may be entitled to financial compensation for their medical bills, injury recovery and lost wages. 


What if an Employee is Injured So Badly They Pass Away?


Unfortunately, sometimes these accidents or injuries can be fatal. If an employee is killed on the job or dies from their injuries, their dependents (most often their immediate family) may be entitled to financial compensation as a result of the loss. While it does not ease the heartache their loved ones feel, it can help them recover from the loss financially which eases their burden of stress.


Who is Eligible for Workers’ Compensation?


An employee (or their dependents) are entitled to receive Workers’ Compensation if:


  • They are actively employed
  • The company they are employed by has Workers’ Compensation insurance
  • They sustain a work-related injury or illness through no fault of their own
  • They meet the state deadlines for reporting the injury or illness and filing a claim

As a Business Owner, Should I Have Workers’ Compensation Insurance?

Workers’ Compensation Insurance is required for most businesses in all 50 states. Businesses that do not carry Workers’ Compensation Insurance can be fined for not having it. Not only does it protect your business from lawsuits if an injury does occur, but it protects your valued employees and their families. 

How does a Small Business Obtain Workers’ Compensation Insurance?

Workers’ Compensation Insurance can be obtained from an approved workers' compensation carrier who will write an insurance policy, from the Assigned Risk Pool when the insurance carriers refuse to write an insurance policy for the company, through a group or individual self-insurance fund or through an approved alternative workers' compensation policy from an authorized insurance carrier

If you are a small or medium-sized business looking to obtain Workers’ Compensation Insurance, contact Coastal Human Resources today! Our Workers’ Compensation Insurance plan is built for smaller businesses like yours and we are excited to help you get started