What is Workers’ Compensation coverage?
Insurance that protects employers and their employees if a workplace accident or illness occurs. Coverage provides benefits, such as medical care and compensation for lost income, to employees who suffer accidental injury or an occupational disease on the job.
Workers’ Compensation Coverage Includes
Pays for an injured employee’s medical bills, including doctor visits and hospital care to prescription medication, physical therapy and other medical treatments.
Partial replacement of income due to lost time on the job.
Enables employees to learn a new skill if they cannot return to their prior occupation due to injury.
Paid to the spouse and minor children of an employee who dies in a work-related accident.
Keep In Mind
- Coverage must be in place when you hire your first employee
- You renew your policy annually
- There is no set limit for statutory workers’ compensation coverage – but amounts paid to each injured employee is set by the workers’ compensation board in each state
- Workers’ compensation coverage is not a substitute for health insurance – employees are only covered for on-the-job injuries or illnesses
Next Question: Why Does a Business Need it?