Workers' compensation insurance is one of the most important types of business insurance you can carry. It provides essential protection for both employers and employees in the event of a workplace injury or illness.
What Is Workers' Compensation Insurance?
Workers' compensation insurance, often called workers' comp, is a type of insurance that provides wage replacement and medical benefits to employees who are injured or become ill as a direct result of their job. In exchange for these guaranteed benefits, employees typically give up their right to sue their employer for negligence.
What Does Workers' Comp Cover?
Workers' compensation typically covers:
Medical expenses: Doctor visits, hospital stays, medications, physical therapy, and other medical costs related to the injury
Lost wages: A portion of the employee's regular income while they're unable to work
Rehabilitation costs: Physical therapy and vocational training if the employee needs to learn new job skills
Death benefits: Payments to the employee's family if a workplace injury or illness results in death
Who Needs Workers' Compensation Insurance?
In most states, including California, employers are required by law to carry workers' compensation insurance. The requirements vary by state, but generally:
All businesses with employees must have coverage
Even part-time and seasonal workers are covered
Some states require coverage for businesses with just one employee
How to Get the Right Coverage
Working with an experienced insurance agent is the best way to ensure you have adequate workers' compensation coverage. They can help you:
Understand your state's specific requirements
Determine the right coverage limits for your business
Implement safety programs to reduce workplace injuries
Navigate the claims process if an injury occurs
Contact Milik & Associates today to discuss your workers' compensation insurance needs.