As a business owner, you are likely required, by Maryland law, to purchase workers’ compensation insurance. It’s there to help you provide financial assistance to employees who get hurt or sick on the job, and who are entitled to benefits due to their ailments.
However, many business owners don’t realize that workers’ compensation insurance is as important for them as it is for any injured employee. Overall, it helps you enact a comprehensive risk management strategy throughout your business, and it make the financial ramifications and liabilities associated with an employee injury much easier to bear.
Here’s why you should consider this coverage an investment in your company, rather than any type of hindrance on your ability to operate.
Workers’ Compensation Limits a Company’s Liability for Losses
When an employee gets hurt while on the job, the employer is almost always liable for the injury, even though the actual occurrence might have been purely an accident. Simply the fact that an injury was related to the employee’s work might entitle them to workers’ compensation benefits provided by their employer’s workers’ compensation insurance. It’s there to offer supplementary income, coverage for medical bills, and other financial assistance related to the employee’s recovery.
As a result, workers’ compensation tends to be an employee-facing benefit. However, it is not without its benefits to the employer, either. Primarily, this coverage enables a business owner to be able to reduce their own liability for an employee’s injury, so that they won’t face an unsurmountable financial loss because of an employee injury.
In most states, even if an employer does not carry workers’ compensation insurance, they are still obligated to pay for the employee’s injury costs. Furthermore, some states do not require employers are not even required to carry workers’ compensation insurance at all but are still completely liable for the employee’s injuries. They therefore have to face the fact that they will be on the line for covering significant costs on their own if they go without coverage. It’s clear that making the investment in workers’ compensation insurance is a much more wise and secure course of action.
Additionally, workers’ compensation law often includes another perk for employers. It requires an employee who agrees to file for workers’ compensation benefits to also agree not to sue the employer (except under limited circumstances). As a result, by offering your employees the opportunity to file for workers’ compensation benefits, you will generally be able to protect yourself from any potential legal action brought by an injured, angry employee.
All in all, workers’ compensation insurance will make certain that your business has a ready solution for the extremely concerning ramifications of an occupational injury. With your insurance agent’s help, you can invest in benefits that will pay off in the best possible ways every time.
Also Read: Personal Injury Risks In General Liability Insurance
Get A Quote