Everyone has heard mention of workers comp insurance, but many people actually don’t really understand what it is or why it is in place. If you operate your own business, you will need to learn what workers comp insurance is, since most states mandate that all businesses have workers comp policies in place to meet legal benchmarks.

Put simply, workers compensation is a widely used insurance program that establishes guidelines for how businesses deal with injuries that take place on the job. Per workers compensation policy, employers must take a certain amount of responsibility for all work-related injuries or illnesses. Workers comp policies, therefore, cover any medical expenses that an employee may incur as a result of an illness or injury incurred on the job.

In addition, workers comp also pays that employee for any wages they may have lost as a result of the injury, whether due to hospital stays, recovery time, or other missed workdays. Finally, workers compensation pays for any additional medical expenses or services that can speed along the employee’s recovery time, with the goal being to restore that employee back to good health can get them back to work as quickly as possible.

Workers compensation protects both employee and employers. On one hand, it makes sure that a worker gets the proper financial support after an injury sustained in the line of work tasks; on the other hand, it protects employers from further liability and negligence claims. When an employee accepts workers comp payments, he or she is contractually agreeing not to sue the company for damages surround the accident that caused the injury. The result of this interchange is undoubtedly the cleanest and quickest resolution that any on-the-job injury can have, a fact that is true for both parties.

An injury that takes place at work is always viewed as a failure. It’s no secret why many businesses tally their number of hours worked without an accident or injury, as large numbers in either category show a company with a true commitment to safety and a genuine level of care for its employees.

However, an injury can also be a valuable lesson for a company to experience, showing business owners like you where policies or safety regulations need to be strengthened to prevent similar injuries in the future. A good workers compensation insurance plan helps a business to focus on that learning experience instead of obscuring everything in legal battle and monetary woes, which results in a safer workplace in the long run.

Contact us today to learn more about what Linares Insurance has to offer as far as workers comp insurance is concerned!