What Is Worker’s Compensation Insurance? – Cooks Beautiful

Is worker’s compensation insurance required for your small business? Yes, for nearly all firms in the United States. Worker’s compensation insurance is almost always required.

This policy provides crucial protection against medical bills and employee claims connected to job injuries, even if it is not required by law.

If you or an employee needs medical care or time off due to a workplace injury – or if an injured employee sues you for failing to avoid an accident – you can rely on workers’ compensation.

If you don’t have workers’ compensation insurance, your company will be liable for any medical costs and legal fees. In addition, most states impose severe penalties for noncompliance.

Why Is worker’s Compensation Coverage Important?

A major workplace injury could put your company’s finances in jeopardy. Whether it’s therapy for carpal tunnel syndrome or a broken leg, many small businesses can’t afford to pay medical expenditures out of pocket.

Does Worker’s Compensation Insurance Protect Against Employee Lawsuits?

Yes, in several states. Most workers’ compensation policies contain employer liability insurance, which protects your company in the event that an injured worker sues you for failing to avoid a workplace mishap.

Your insurance carrier will cover the following expenses if an employee sues for negligence:

  • Fees for attorneys
  • Expenses in court
  • Settlements or court rulings

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