Workers' Compensation
Every business with employees needs to address the issue of workers' compensation. We will look into what workers' compensation is, why they need it, and how it works.
Workers' compensation, also known as workers' comp, is a category of an insurance policy. Like any other insurance policy, compensation insurance is a policy that protects against the losses from insured perils. It protects businesses and their workers from financial damage when an employee is injured on the job or gets ill due to work-related causes.
What is covered by a compensation program?
The state regulates the compensation policies. It generally provides coverage for lost wages, death benefits, rehabilitation expenses, and medical expenses. The medical costs include covered expenses for events like surgery, doctor visits, prescription medicine, and physical therapy. Accidents that are covered by compensation programs range from sudden accidents to work-related injuries that take place over time. Moreover, compensation claims also acknowledges the employee's inability to stay at work. It covers the replacement income as well.
Are all on-the-job injuries covered by compensation coverage?
Generally, workers' compensation insurance policies cover most of the injuries that take place in the workplace. It covers costs even if the injury takes place due to the carelessness of either employee or employer. However, it does not cover damages that are due to the intoxication by employees. Moreover, an injury caused due to the employee violating a company's policy is also not covered.
Comparing to other segments of insurance, compensation insurance can be a profitable market for the agents. Every state law requires employers to have a certain level of compensation benefits. Since employees are the most crucial asset for a company, this kind of coverage insurance is gaining a lot of importance.
Workers' compensation is the perfect option for insurance agents looking forward to profiting from a niche market.
