A Few Facts About Worker's Compensation Insurance

We've recently shared 7 good reasons to have Worker's Comp insurance.

The downside of not having worker's comp insurance is that any worker who has a job-related injury or illness could possibly sue your business. For example, say you have workers at a job site and one of them gets hurt on the job.

​He or she goes to the doctor for treatment, and unfortunately ends up with an injury that requires surgery. The cost of treatment can run into the thousands of dollars and could potentially put your business out of business.

Because of this, it's important that you have worker's comp insurance so you'll be covered in the event an employee is hurt or becomes ill on the job.

What Is Workers' Comp Insurance?

Worker's comp insurance is a type of coverage that can help you pay for medical expenses and lost wages if an employee is injured or gets sick because of the job.

The requirements vary from state to state, but some states may require employers with only one employee to carry worker's comp.

Even if it's not required in your state, carrying this type of insurance can still protect you from lawsuits from employees who have been injured on the job.

What Does Workers' Comp Insurance Cover?

Worker's comp insurance provides coverage for work-related injuries or illnesses that occur to an employee. This includes things like:

Medical expenses, such as surgery or doctor visits after an accident.

Lost wages for time that you employee is unable to work because of treatment or other reasons related to the injury.

Other benefits for workers who are permanently disabled due to a workplace illness or injury. These can include things like vocational rehabilitation and even death benefits paid to a surviving family.

What Does Workers' Comp Insurance NOT Cover?

Worker's comp insurance doesn't cover anything that is considered a pre-existing condition or is the result of an employee playing sports, drinking alcohol, or doing illegal drugs.

It also won't pay for things like injuries that happened due to horseplay or carelessness on the employee's part.

Are There Any Alternatives to Worker's Comp Insurance?

If your business is very small, you may not be required to carry worker's comp insurance. However, some states do require certain types of businesses to have an alternative form of coverage in case an accident ever happens.

Some examples are:

• A state fund that can pay for workers' comp claims.
• Carrying a bond to protect against injuries or illnesses in case of accidents on the job.
• Getting insurance from an employer's organization, such as the local chamber of commerce, particularly if you have only one employee and don't qualify for worker's comp insurance.

How Can I Lower My Costs for Worker's Comp Insurance?

There are a few things you can do to help lower your costs when buying worker's comp insurance. One option is to get quotes from several different insurance companies, so that you'll have a better idea of how much it will cost per month or per year.

You may also want to consider raising your deductible. This way, if you ever need to file a claim, you'll have some money put away in case of emergencies.

Is Worker's Comp Insurance Required?

Some states require employers to carry worker's comp insurance, while others do not. Georgia is one of those states, so if you are in Loganville or any of the great towns or cities in the Peach State, you will want to buy it since the cost of lawsuits due to workplace injuries and illnesses can be extremely high.

Making sure your business has worker's comp insurance is important. Not only does it provide protection against potentially expensive legal costs in the event of a lawsuit, but it also gives you peace of mind knowing your employees are safe.

For more information on how to get the coverage you need, contact the straight shooters over here at Arrow Insurance Agency today.

We are an independent insurance agency able to find great policy options and great value for our clients!