Workers Compensation Insurance: What Is It?

Workers Compensation Insurance: What Is It?

Workers compensation insurance is here to protect your business from its employees.

Workers compensation is a safety net for people who get injured because of their work. Its benefits can cover medical bills and replacement wages during the time an employee cannot work due to the injuries sustained. Modern business insurance works like this, employers and employees pay into a fund. If an employee gets hurt, they are eligible for benefits from that find. Nobody gets sued, nobody gets blamed, and the employee is allowed to get healthy and return to work with some compensation while they are not able to work; it’s a win-win!
But What Is it?
Think of worker’s compensation as that second parachute all skydivers pack. When something goes wrong, it deploys to save you from the damage that could occur from falling 10,000 feet. Specifically (and non-analogical), when an employee gets hurt or sick because of the job, workers comp benefits can pay for the expenses and replacement wages. In the long run, it’s a good insurance policy to have—and don’t forget that it’s legally required of your business!
What Does Workers Comp Cover?
What it covers:

  • Medical bills
  • Wages missed while recovering (often partial)
  • Ongoing care, including rehabilitation
  • Employee lawsuits over injury
  • Funeral expenses, and death benefits

What it doesn’t cover:

  • Lawsuits over professional errors (e.g. employer knowing that the backup parachutes are faulty, yet permitting skydiving)
  • Third-party lawsuits
  • Parental leave benefits
  • Wages for a replacement

Workers compensation is an insurance policy that you should invest in for when workplace accidents occur. Because it’s not a matter of “if,” it’s a matter of “when” Contact Purves & Associates Insurance Services. Serving Davis, Sacramento, and surrounding Northern California areas, we can help with all of your business insurance needs to keep your company protected.