In order to bypass the lengthy and confusing legal process for employees injured on the job, workers’ compensation laws were put in place. These laws are beneficial to both the employees as well as employers. First, they ensure workers will be paid an appropriate fixed amount when they are unable to do their job. Second, they protect employers from potentially having to overpay, thanks to limits many states decree can be recovered by the worker.
With “workers’ comp” comes Workers’ Compensation Insurance. Its purpose? To ease the process for employers who will have to pay these benefits. It is also a protection for employees – so much so that every state but Texas and New Jersey requires business owners to have this insurance coverage. And, even then, employers in these two states are still held liable under their workers’ compensation laws regardless.
It is important to note that Workers’ Compensation Insurance and health insurance are not the same thing. While health insurance covers health-related issues and injuries pertaining to everyday life, Workers’ Compensation is specific only to injuries and illnesses that are due to a workplace exposure.
Although it is extremely beneficial and necessary to have Workers’ Compensation Insurance for businesses engaged in hazardous activities, it is a smart idea to be protected no matter the industry, even if this coverage isn’t mandatory. Remember that employers have a legal responsibility to keep the workplace safe. More important, remember that accidents can and do happen even when all safety measures are taken.