Get a Free 1-on-1 Financial Planning & Strategies Session to Maximize Tax Savings.
WORKERS COMPENSATION
Worker’s Compensation Insurance (often called Workers’ Comp) is a type of business insurance that provides wage replacement and medical benefits to employees who suffer work-related injuries or illnesses. In return, employees typically relinquish the right to sue their employer for negligence.
Key Features
- Covers Medical Expenses: Pays for the employee’s medical treatment, rehabilitation, and ongoing care related to workplace injuries.
- Replaces Lost Wages: Provides a portion of the employee’s income while they recover and are unable to work.
- Includes Disability Benefits: Offers temporary or permanent disability coverage if the injury results in partial or total disability.
- Death Benefits: Provides financial assistance to dependents if a work-related injury or illness results in death.
- Legal Protection for Employers: Helps protect the business from lawsuits arising from employee injuries.
Benefits to Employers and Employees
For Employers
- Reduces legal liability
- Ensures compliance with state laws
- Promotes a safe work environment
- Enhances employee trust and morale
For Employees
- Covers medical and rehabilitation costs
- Provides income during recovery
- Offers job security and peace of mind
- Covers long-term disability if needed