What is Workers’ Compensation?
When workers are injured while doing their jobs or exposed to substances that lead to illnesses, companies are legally responsible for assisting with medical expenses incurred by the workplace-related injury or illness. The benefits are administered to assist workers in recovery and to help them return to work.
Company size doesn’t matter; both small businesses and large corporations are obligated to provide workers’ compensation to employees who are injured in the workplace. (Although, sole proprietors and partnerships typically aren’t required to purchase a workers’ compensation policy unless they have employees who are not owners of the company.)
In this post, we’ll offer some basic facts about workers’s compensation insurance and how to protect your company.
Why Do We Have Workers’ Compensation?
Workers’ compensation regulations protect both employers and employees.
The early 20th century was a time of great change in America, as citizens became increasingly vocal about their rights. At that time, workers who were injured or became ill due to their work were forced to take legal action against their employers. Doing so was often necessary in order to receive any type of compensation for medical expenses related to workplace injuries. Because there were no regulations in place, it was difficult for workers to obtain compensation, and companies were at the risk of being devastated financially while covering these expenses.
Maryland was the first state to pass a workers’ compensation law in 1902. By 1949, all states had some system in place for workers’ compensation. While workers’ compensation requirements are determined by each state, there are some federal regulations that do apply to all states.
Why Employers Need Workers’ Compensation Coverage
Most states require employers to have workers’ compensation insurance to ensure they can support a worker injured on the job. Failure to have workers’ compensation coverage or meet state regulations leaves employers in the position of having to pay workers’ compensation benefits out of pocket. This may also subject the company to state penalties for failure to meet workers’ compensation requirements.
Workers’ compensation coverage ultimately protects both companies and employees. A workers’ compensation insurance policy prevents employers from being overwhelmed by unexpected expenses by enforcing guidelines and regulating expenses.
Safety Measures in the Workplace
Maintaining a safe working environment and emphasizing safety measures will help prevent workplace accidents, leading to fewer workers’ compensation claims for the company. Have regular conversations and meetings with employees about workplace safety measures, make repairs to equipment or working environments in a timely manner, and employ good lighting conditions to reduce the risk of slip and fall accidents.
Workers’ Compensation in Indiana
If a company is required to have workers’ compensation insurance under Indiana law and does not have a policy when a worker is injured, the employer will be required to pay penalties as stipulated by the Workers’ Compensation Board. Workers cannot be fired for filing a workers’ compensation claim.
Kincaid Insurance offers workers’ compensation policies for the needs of any business, large or small. Our expert team of independent agents is ready to assist you with choosing the workers’ compensation coverage that is best for your company and your employees. We routinely help companies in Evansville, Newburgh, Jasper, Vincennes, Mt. Vernon, and many other communities.
Call 877-888-5506 today!