Workers’ compensation insurance gives employees medical, wage and other financial benefits if they are injured or become ill on the job. This coverage is required in most states. Workers’ compensation insurance is also known as workman’s comp or workers’ comp insurance.
What Does Workers’ Compensation Insurance Cover?
Workers’ compensation insurance helps your employees recover from work-related injuries and illnesses so they can get back to work faster. Workers’ comp benefits can help:
- Cover medical care and medical treatment
- Replace most of their lost wages if they take time off from work to recover
- Provide disability benefits
- Give death benefits, like helping pay for a funeral if they lose their life in a work accident or from a job-related illness
Workers’ comp coverage also has benefits for small business owners. For example, it includes liability insurance coverage. So, if your business faces lawsuits from injured workers or their families, workers’ comp can help pay for your legal costs.