Required as per the state and federal law, workers’ compensation insurance is a type of policy that companies must carry primarily for the purpose of providing workers with adequate compensation in the event of a work related injury. However, beyond the most evident benefit of compensating for workers’ medical expenses, complying with the workers’ comp laws also provides multiple benefits to the employers.
Here are the 3 benefits of workers’ compensation for employers:
1. Avoids Lawsuits
Suppose a company is not properly self-insured or does not have sufficient workers’ compensation insurance. In that case, an injured employee can legally sue for compensation for their medical expenses and any lost wages. Although they cannot sue for pain and suffering, the compensation they do receive may be much more than your company can afford to pay. It’s essential to remain in compliance with state and federal law and carry the required amount of insurance, so as to prevent unnecessary lawsuits that would eventually drain your resources. Companies that do not remain in compliance are bound to face huge penalties.
2. Offers Financial Security
Paying for an injured worker’s medical expenses can be quite expensive. Add to that amount the wages they have lost while they have been off work, and the result is a considerable sum to be paid out of pocket. With proper workers’ compensation insurance, your company will not have to drain its own resources. Your workers’ compensation insurance will take care of both the medical expenses and the lost wages. While many injuries heal quickly and a person can return to work in a few days or weeks, other more severe injuries may result in long-term medical care. In such situations, the individual may not be able to return to work at all.
3. Protects Your Most Important Asset
Your employees are your most important asset. They are responsible for all of the hands-on work that gets completed throughout the company. Without them, managers would have nothing to manage, and productivity will drop to an almost negligible level. A workers’ compensation policy is put in place to protect your most valuable asset by providing them with what they need when they need it the most. Without workers’ compensation insurance, you will be facing a significant risk in terms of losing the workers who do their best to ensure the success of the business.
Having the right insurance coverage ensures that your company is fully protected from financial loss and will allow for continued growth and success. It also guarantees that your employees have the sense of security they need to perform their duties and know they are being well taken care of.
Do you have additional questions about workers’ compensation? Contact the experts at VGW Walker Insurance in Texas, today. We are ready to help you with all your coverage needs.
