There are four types of workers compensation benefits that make workers compensation insurance an essential coverage for all businesses to obtain. While workers comp is legally required for employers to purchase after they hire their first employee, many employers still choose to go without workers compensation insurance, making them vulnerable to paying high medical costs and lawsuit fees out of pocket.

We’ve highlighted the four main benefits of workers compensation insurance below.

  1. Income: Income benefits can pay a portion of a worker’s lost wages. When an employee is injured they are often not able to return to work right away. An employers’s workers compensation policy can help to cover a portion of the worker’s lost income while they recover from their injury.
  2. Medical: Medical benefits can pay for medical care for treatment of a work injury. When an employee is injured, the costs to treat the injured worker can be astronomical. Without workers compensation insurance, the employee or their family could file a lawsuit against the employer for costs associated with the workplace injury. A lawsuit such as this one could force an employer to close their business due to the financial ramifications, and it can even lead to a criminal investigation of the employer’s business practices.
  3. Physical Rehabilitation: Physical and occupational rehabilitation for recovery and training. The cost to rehabilitate an employee after an injury can be extremely high. Without workers compensation insurance the employer can be forced to pay for these costs out of pocket and can even be vulnerable to a lawsuit.
  4. Death: Death benefits pay some lost wages to the family of a worker killed on the job. Should a tragedy occur, and an employee dies on the job, workers compensation insurance can provide the family with a portion of the employee’s wages. Without workers compensation insurance, the family of the deceased could file a lawsuit against the employer, making the employer’s business and personal finances vulnerable.

If you have any additional questions about workers compensation insurance, or you would like a quote, please feel free to contact our office anytime.