Workplace Injury Costs: Why You Need Workers Compensation Insurance

Find out which expenses workers compensation insurance covers in the case of a workplace injury. 

Unfortunately, workplace injuries are an unavoidable reality for every industry.  An on-the-job injury can happen anywhere at any time.  In almost every state, worker’s compensation is required by law.  That’s why it is important for businesses to make sure they understand what workers compensation insurance is and how it works.

Workers compensation, also known as workers liability insurance, provides financial coverage for employees’ workplace injuries.  However, worker’s compensation doesn’t just benefit employees, it also benefits the business owner.  If an employee files an injury claim, then the cost of their medical treatment is covered by worker’s compensation insurance.  The financial burden does not fall to the company.

Worker’s compensation can cover an employee’s medical expenses, their lost wages, their disability expenses, and support payments to their dependents.  Should an injured employee waive their benefits in favor of suing, then the insurance will cover the costs of the employer’s legal defense.

However, worker’s compensation doesn’t necessarily cover all the financial expenses incurred by workplace injury.

With every workplace injury, there are indirect costs that affect the company.  Indirect costs include the cost of investigating the accident site, the loss of workplace productivity caused by the accident, and the damaged morale of the injured employee’s coworkers.  The business is responsible for paying for these more intangible costs.

One way for companies to cut down on costs associated with on-the -job accidents is to prevent these types of injuries in the first place.  Having a solid safety training program for employees can greatly reduce the number of accidents.  Additionally, employers should do their best to make sure that their employees have safe work environments.  This means being vigilant about things that can cause accidents, such as leaky pipes or irregular flooring.

Training employees about what to do in the case of a workplace accident can also reduce injury costs.  Many injuries that take place on business property are made worse by incorrect handling of the situation.  The less severe the injury is, the less likely that a big worker’s compensation claim will be filed.

Make sure your clients are getting the right type of workers’ compensation insurance. We at PMC Insurance Group are experts on workers compensation and can provide quality and up-to-date insurance for you to sell.  To learn more about getting competitive coverage for your small business and construction clients,  contact us today.

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