Workers Compensation Coverage: Mistakes to avoid when making the purchase
Workers compensation coverage is insurance that provides benefits to employees who are injured or become ill as a result of their job. The coverage typically includes medical expenses, lost wages, and rehabilitation costs.
Here are some common mistakes to avoid when making a purchase:
Not fully understanding the coverage
Before buying, make sure you understand what the policy covers and what it doesn’t.
The exact coverage of workers’ compensation varies depending on the laws in the state where the employee is located, but generally it covers:
Medical expenses related to the work-related injury or illness, including hospitalization, surgeries, medications, and rehabilitation.
Lost wages for the time the employee is unable to work due to the injury or illness.
Permanent disability benefits if the employee is unable to return to work due to a permanent injury.
Death benefits if the employee dies as a result of a work-related injury or illness.
There are some things that workers’ compensation does not cover, such as:
- Injuries or illnesses that are not work-related.
- Injuries or illnesses that result from the employee’s intentional or criminal acts.
- Injuries or illnesses that result from the employee’s use of illegal drugs.
- Injuries or illnesses that result from the employee’s horseplay or failure to follow safety rules.
It’s important to note that workers’ compensation is the exclusive remedy for employees, meaning that employees cannot sue their employer for work-related injuries or illnesses.
Not shopping around
Don’t just go with the first quote you receive. Shop around to compare prices and coverage options.
Underestimating your business’s needs: Make sure to have an accurate estimate of the number of employees and the potential costs of claims.
Not having proper safety measures in place: Having proper safety measures in place can lower the cost of coverage and reduce the risk of claims.
Not reviewing policies regularly
The needs of your business can change over time, so it’s important to review your coverage regularly to ensure it still meets your needs.
