Most employers consider their employees as part of their families and ensure their good care and well being. Nonetheless, we have heard about several workplace accidents that have caused severe injuries to the workers or even loss of lives. Hence, to prevent financial difficulties to the injured person’s family members, employers use workers comp insurance to cover their workers.
The primary advantage of this insurance is that the workers receive medical benefits and replacement of their wages when they are injured at the workplace. Additionally, the employee cannot sue the employer for negligence when he/she is covered with this insurance. This cover is an exchange among the employer and the workers.
In the United States of America, workers comp insurance is compulsory as per the government regulations. Prior to the mandatory insurance cover, employees had to take the assistance of civil law suits and prove the employer’s negligence if they were injured at the workplace. Therefore, in most instances, employees were unable to recover any damages from their employers for injuries.
However, with this type of insurance coverage, employees are able to receive compensation for injuries caused at the workplace. Moreover, employers can save a significant amount of taxes by paying the premium on the workers comp insurance policies. In addition, the insurance companies cover the medical bills incurred to treat the injuries and also pay the loss of wages due to inability to work after injury. This ensures the employer does not have to pay these huge amounts of money, which may leave the company in a financial crunch.
However, some employers do not need to provide such insurance coverage to their employees. These include nationalized industries, health service agencies, police authorities, subsidiaries of nationalized industries, local authorities, and committees or boards that include members of the local authorities. To avail the benefits under workers comp insurance, it is recommended to hire the services of an experienced attorney.