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Tuesday, 21 September 2021

Who Benefits from Workers’ Compensation Insurance―the Employee or the Employer?

Written by May A.
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Who benefits from workers’ compensation insurance?  The insured staff or the business that provides the insurance for its employee? Whether it's the employee or the employer, it is no doubt that this type of insurance is necessary for all businesses.

It’s not like a complicated math problem to solve. At face value, many would point fingers at the employee. “Well, of course, it’s definitely the worker. After all, he is the one insured!”―this might be a common thought. But a closer look at this article would tell you that it is not just the case.

What is Workers’ Compensation Insurance?

For you to better understand the question, let us tell you more about workers’ compensation.

It is an insurance policy that covers all the costs of medical treatment and loss of wages in the event of injury during or due to employment. The cost of workers’ compensation varies depending on the type of job and the risk associated with it. Jobs leaning towards heavy manual labor such as construction require higher coverage and premiums.

Moreover, each state has its own laws and regulations on workers' compensation insurance. Features such as the number of benefits to which an employee is entitled, what impairments and injuries are covered, and how medical care is delivered are all regulated and determined by the state the business is in. Also, not all companies are required to get this insurance (although most businesses are obliged to). For small businesses that do not have non-owner employees, they are not obliged to avail such workers' compensation insurance.

Although employers are legally required to ensure that the workplace is a safe environment, accidents still happen at times. And this is where the role of workers’ compensation insurance comes in. No matter how many security and safety routine checks a business conducts, accidents are mostly unforeseeable. But that doesn’t mean that they can't be dealt with. With workers’ compensation, if an accident happens while the employee is working, the insurer is not required to decide who is at fault.

Benefits of Workers’ Compensation Insurance to the Employee

In its simplest form, this type of insurance is really meant to protect the employees. After all, they are the most valuable asset of any business. When a company or business provides this insurance to its employees, the latter won’t be obliged to bear the cost of their treatment should they be injured or permanently disabled during their employment.

Logos Insurance's workers’ compensation insurance covers a wide variety of accidents and circumstances, including those caused by accident, such as slips and falls; injuries caused by overuse or misuse, such as chronic back problems and repetitive stress injuries; and other ailments and disorders brought on by the workplace, such as lung disease, heart disease, and stress-related digestive issues.

Our workers' compensation covers the following:

  • Medical costs incurred as a result of the accident or disease
  • Wages that were not earned
  • For permanent injury, compensation is available.
  • The price of retraining
  • Survivor benefits - for workers who die on the job.

So if you’re an employee who is insured under workers’ compensation, fret not. These benefits and coverage will ultimately be handed to you in the event of any mishaps in your workplace.

Benefits of Workers' Compensation Insurance to Employers and Why They Should Avail It

It might be called workers’ compensation, but this insurance surely is not only meant to protect employees. It’s actually a double defense, meant for two parties―the employer and the employees.

This insurance policy serves as a shield that protects employers from bearing all the costs of accident treatments. Any extra expenses that might result from accidents in the workplace are covered by workers’ compensation (except for some factors). Businesses, especially those in high-risk industries, are spared of the hefty amounts of hospital bills and loss of wages if they avail of workers’ compensation insurance for their staff.

More than that, the continuous treatment of the employees could translate to their better performance once they get back to work. So reduced productivity and additional cost of hiring temporary workers are scraped off from the employer’s back.

Most importantly, employers also run the risk of being sued by their employees if they don’t have workers’ compensation insurance. And even if they win the case (should they be sued), the court can order them to pay for medical costs, punitive damages, lost wages, and even pain and suffering, all of which can be financially devastating to the company.

Avail the Workers' Compensation Insurance Now

In general, workers’ compensation insurance serves two purposes: it assures that injured workers are treated medically and given compensation for a portion of the income they lose while unable to return to work, and it protects employers from lawsuits by workers injured while working.

To put it simply, both employees and employers benefit from workers’ compensation insurance. And from the employer's perspective, the cost of this insurance is a small price to pay for this protection. So, if you’re thinking of getting one (which you should), you can speak to one of our agents at (818) 649-2267 or request a quote from us.

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Contact Info

 

Phone: (818) 649-2267

e-mail: contact@logosinsure.com

Logos Insurance Services. License #6004349