What is Worker’s Compensation?

• If an employee is injured on the job, worker’s compensation covers the costs of medical expenses, recovery and any missed wages.
• If your company dabbles in dangerous work that might be hazardous to employees, worker’s compensation insurance is highly recommended.

What does it cover?

• Any medical expenses and wages missed by the injured employee
• Legal fees if the employee sues over a work-related injury
• If an employee dies, it can cover funeral costs and benefits to the employee’s family

What does it not cover?

• Injuries cause by an employee due to intoxication
• Self-inflicted injuries
• Off-the-job injuries
• OSHA fines
• Wages for a replacement worker
• Injuries due to horseplay or company violations
• Independent contract injuries
• Injuries from fighting employees
• Injuries claimed by a laid off or fired employee

Some states require businesses to have worker’s compensation as soon as they hire their first employee but even if it’s not required, it’s still a smart move to have this type of coverage.

This type of insurance is often bundled with other policies such as Business Liability Insurance.