Importance of Workers Compensation

FB – Often times we hear those horror stories of people getting injured on the job. Construction worker hammers a nail into their hand, or a well driller loses a thumb. Yeah, I’m not hungry anymore either.

For those who aren’t familiar with workers compensation, it is simply an Insurance policy that a business can purchase at a premium rate, to protect the business if employees become hurt while on the job. And ironically, as I was writing this, we almost had a workers comp claim ourselves (see photo right)! Luckily, nobody was hurt. Now the window on the other hand had seen its last sunrise. In the world we live in, it is an important reminder to always be prepared for the unexpected.

It’s fair to say that some stories in the workers comp world make you cringe, or grab a limb you now find so much more valuable. But, we also hear about workers comp fraud. Which is a huge problem in the Insurance realm. The negativity of those fraud claims sheds a dim light on these types of policies. Workers Comp can cripple a small business, by buckling a company at the knees if not covered properly.

Here are some friendly tips, facts, and questions you should ask when thinking of your business’s workers compensation policy:

  1. The Injury must be “arising out of and in the course and scope of employment.”
  2. The Injury must occur as a result of doing the functions of an individual’s job.
  3. Did the injury happen at a place of employment or at a work function?
  4. Was the individual doing work activities when the claim took place?

At the end of the day, workers compensation benefits both the employee who is hurt and the owner of the business. From the employee, it helps pay their medical bills and they’ll have the support from their employer. On the other side, if an owner has an injured employee, a workers compensation policy can help pay the employee’s medical bills.

As much as we want to point to workers compensation to be a negative type of insurance policy, it can actually be helpful for all parties involved, if done right and in a timely manner. Is your business covered?

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