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Workers’ Compensation (often referred to as “Work Comp”) is insurance that covers an employee’s injury or illness arising from the course and scope of his or her employment. Workers’ Compensation is a no-fault system, which means employees are entitled to compensation for covered claims even if they were at fault for the incident.
Although Workers’ Compensation coverage and laws vary on a state-by-state basis, in general employers are legally required to provide a safe work environment for their employees and to warn employees about any workplace hazards. They are also legally required to obtain Workers’ Compensation insurance. Ultimately, Workers’ Compensation coverage is beneficial for both the employer and the employee: the employer fulfills their statutory obligation to compensate employees for lost time from work, medical benefits, and rehabilitation services related to the injury or illness; and the employee receives prompt, guaranteed payment for covered injuries or illnesses and avoids potentially long and costly lawsuits.
Workers’ Compensation functions as the primary coverage for an employee’s claim. For instance, if an employee is injured in an automobile accident during corporate travel, Workers’ Compensation would cover the incident before the Commercial Auto policy.
For more information about Workers’ Compensation and how it applies to your business, contact your Independent Insurance Agent.