How Worker’s Compensation Insurance Works for Small Businesses

Posted on October 14, 2011 by

Most of the small business owners think that they do not require workers compensation insurance for their business. Only some of the small business owners take workers compensation insurance.

A workers compensation insurance is specially designed for a business to protect their employees against work related injuries. It also helps to prevent employers from being sued by their employees when accidents happen. In most of the countries workers compensation insurance is necessary legal requirement to have for the business. A workers compensation insurance is taken by the employer for their employees and the premium amount is paid from the business expenses or sometimes it can be deducted from the employees salary amount.

Workers compensation insurance works for small businesses in a great way to save the business and it’s employees from all work related injuries. Here are few points that tells about how workers compensation insurance works for small businesses.

  1. Workers compensation insurance helps business to protect their employees from all work related injuries, such as, business vehicle accidents, getting sick at the work place due to heavy machine handling and so on. If an employee gets injury by the work related accident then the worker compensation insurance pays for the employee hospital expenses and also pays for surgery cost, if the injured person needs any surgery. It will also pay for the medical bills of the injured person.
  2. Workers compensation insurance provides death benefits for employees, if they die due to work related accidents or while they are on job. If an employee dies by operating the bad or older machine, or the vehicle meets with an accident while transporting the goods, the business owner is responsible for the death of employee. The business need to pay some amount of money to the employee dependents. If the business has workers compensation insurance then the insurance pays death benefits for the employee dependents.
  3. Sometimes employees get temporarily disabled or permanently disabled due to the work related injuries. In such cases the workers compensation insurance pays some percentage of wage to the disabled employee for the period in which the employee is unable to work.

In all the above situations, an employer or business owner is responsible, and they need to bear all the expenses. If the business owner does not take the responsibility then the employee seems to claim a legal claim on the business owner. When a claim is registered on the business, the owner has to pay for the expenses and legal fees. Workers compensation insurance works for the business to protect the firm from such type of legal sues or claims.

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