The Benefits Of A Workers’ Compensation Policy
Dan Levenson November 10, 2015
A workers’ compensation policy is essential based on how many injuries are possible in any type of work environment. Workers’ comp is there to help protect you against having to pay out medical expenses if one of your employees happens to get injured on the job. Plus, you’re protected from having to pay them for lost wages they incurred while recovering from their accident.
These benefits are why buying a workers’ compensation policy is a top priority. There are many that can help you dodge the worst type of financial and legal disasters. A number of those benefits are ones you probably haven’t thought enough about, yet could prevent your business from being destroyed due to the financial fallout.
Nevertheless, if you think you can skip buying workers’ comp, most states require it anyway, including New Jersey. Prices do vary depending on your state, so working with an insurance provider can help you find the best policy deal.
First, let’s take a look at other situations you could find yourself in where a workers’ compensation policy would help save your company.
The Expense of Having to Hire a Replacement Employee
You perhaps didn’t stop and realize that if one of your employees couldn’t work due to a severe injury, you’d have to hire a new employee to take their place. This expense adds more financial trouble if you’re also paying for the injured employee’s medical expenses.
A good workers’ compensation policy has numerous cost-prohibitive features that help pay for tremendous medical costs and lost wages you’d have to pay to an employee. With your policy in your corner, you won’t have to worry about ending up in the red and perhaps having to declare bankruptcy due to the excessive financial burdens.
Paying for Legal Costs
There isn’t any denying that the cost of litigation is overwhelming. When an employee gets injured, it could mean a lawsuit and having to hire lawyers to defend yourself against paying your employee compensation.
While some lawyers work without charge in rare cases, you can’t expect it. Your legal costs could end up breaking your back, and a workers’ comp policy helps protect you. This works through liability insurance that’s usually included in most policies. It’s worth asking your insurance provider about this so you know it’s definitely included in any policy you choose.
Supporting Defendants of an Employee Who Dies on the Job
The worst case scenario could happen and an employee dies while on the job in your company. As a result, the employee’s family could sue you for lost wages and other injuries. Yet most policies help pay the defendants for the death of the employee. Those same policies also pay for funeral costs to help make a tragic process less painful.
Covering Injuries Not Covered in Your State
You have to expect unusual situations to sometimes occur when an employee gets injured. It’s possible the injury your employee had isn’t typically covered in your state. With a workers’ comp policy, you can have coverage for an unusual injury not common in your industry.
You could end up with an unpleasant surprise when it comes to certain scenarios, including injuries you wouldn’t think are expensive. Some of these injuries could include carpal problems or even something seemingly more benign like an allergic reaction.
Anything requiring medical care is costly, and protecting yourself is the key to your business survival in an unpredictable world.