The Importance of Workers’ Compensation to Businesses

Employers are legally obligated to ensure the safety of their workplace, whether that workplace is inherently dangerous, like construction sites, or not, like offices. But workplace accidents do happen. Employees can sustain an injury or acquire a terrible illness, making them less efficient, and worse, they may even lose time at work.

Workers’ compensation exists so these employees can get financial help. According to the website of Scudder & Hedrick, PLLC, filing for a workers’ compensation claim can be a long process. But this may be necessary so employees can get their employers to pay their hospital bills, lost wages after missing time at work, and rehabilitation.

This may look like extra costs for employers, but it cannot be denied that having a workers’ compensation policy is very important. It is required by law, but different jurisdictions have different guidelines about the insurance. There may be jurisdictions that require businesses to have at least three or four employees to be eligible for workers’ compensation, and there may be jurisdictions that require only one.

Looking at it in the most direct way make you realize that it is extra cost, but when you consider it deeper, the extra cost is worth it. Having a good workers’ compensation can attract competitive employees, and better, these employees may even stay with you for a long time. Workers’ compensation can be attractive to workers in dangerous environments, such as factories.

The insurance plan can cost more if your business is more prone to accidents, so it is understandable that you still have your doubts. But this also means that you are more willing to enforce a more effective safety program to avoid accidents, injuries, and workers’ compensation claims. It can even trigger a ripple effect and reduce the cost of your premiums. You make your workplace safer and you pay less to your insurance. It’s a win-win situation.

Putting your employees on workers’ compensation also defends you from greater financial costs. If your employee does not have workers’ compensation, he may sue your company, especially if the accident that has caused the injury or illness is negligence on your side. Employees who have workers’ compensation waive their right to sue you, protecting you from the hassles of courts and high settlements.

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