How Does Worker’s Compensation Protect My Small Business?
Every business regardless of size, industry, or function has the potential to see workers hurt on the job.
The American workers compensation program was established over 100 years ago and exists to help protect both workers and businesses if a worker is hurt while performing their duties.
A cooperative arrangement, the workers comp program is designed to reduce the conflicts between businesses and employees after accidents occur in the workplace. In short, workers comp programs help ensure that your business and your workers are on the same side after an accident and that both parties are protected from overbearing expenses.
Workers comp helps injured parties collect lost wages, medical bills, and legal expenses, in return the employer is protected from lawsuits related to the injury.
Workers comp is required in nearly every state and situation in the United States. Employers must ensure that they have coverage and follow all policy requirements to prevent fines or even imprisonment.
Since it is required, many small business owners wonder how workers comp protects their business.
SOCA has assembled a short guide to give you the basics of workers' compensation and the benefits it provides your business.
How Workers Comp Benefits Your Business
The goal of the workers compensation program is to protect workers and employers from financial ruin from accidents that occur in the workplace.
This guide on workers comp is intended for educational purposes only. Laws and best practices are prone to change, please reference state legislation or consult trusted legal counsel.
Before workers comp took hold in the United States, workers who were injured on the job had to fight for compensation for lost wages and medical expenses. That meant workers had to prove employer negligence in costly legal battles. Many workers did not have the means to hire lawyers and because of this, many workers hurt on the job never received any compensation.
The first comprehensive U.S. workers comp laws took hold in Wisconsin in 1911. Nine other states adopted similar laws that same year. Thirty-six additional states followed suit before 1920. Over the next decades, the remaining states passed workers comp laws, ending with Mississippi, which finally passed workers comp guidelines in 1948.
Workers Comp Employer Benefits
Many people think that workers comp benefits only help workers. This is untrue. Workers comp benefits provide many vital benefits to employers as well.
Here are some of the biggest benefits workers comp programs provide businesses.
- Companies are protected from lawsuits filed by employees for workplace accidents
- Workers' comp programs provide cost-effective coverage that protects your employees from injury and illness
- Workers comp helps employees get back to work in their old role or a new one
These benefits are crucial for small businesses as they can save them from financial ruin and protect business owners from imprisonment in the case of workplace injury.
State laws will help determine what your business needs to be fully covered. This includes the following:
- The number of benefits
- The types of injuries that are covered
- How benefits and care are provided to employees
- Who is covered (some policies do not cover employees from other states or those that travel to other states for work)
Every state requires workers compensation for your business. Consult with legal counsel to ensure that your business has proper protection.
Better Workers Compensation with Hunter Consulting
Better benefits start with better research.
It is not always easy to tell where you can find the best benefits for your business, and this is especially true when it comes to workers compensation programs.
SOCA makes it easy for you. We only partner with the best firms to help save your business time and resources.
Hunter Consulting is SOCAs partner in the areas of Workers and Unemployment Compensation. Hunter Consulting provides quality, aggressive claims services while being considerate and helpful to their employees and clients.
If you are looking for better Workers' Compensation for your small business, reach out to Hunter Consulting to compare costs and benefits.