{"id":1372,"date":"2019-07-18T13:47:13","date_gmt":"2019-07-18T13:47:13","guid":{"rendered":"https:\/\/www.insurancebee.com\/blog\/?p=1372"},"modified":"2023-02-08T10:00:06","modified_gmt":"2023-02-08T10:00:06","slug":"what-is-workers-compensation-insurance-and-why-do-i-need-it","status":"publish","type":"post","link":"https:\/\/www.insurancebee.com\/blog\/what-is-workers-compensation-insurance-and-why-do-i-need-it","title":{"rendered":"What is workers’ compensation insurance and why do I need it?"},"content":{"rendered":"
\n
\"what<\/figure>\n<\/div>\n\n\n

Workers\u2019 compensation\ninsurance is coverage designed to protect your business from the cost of\nworkplace injury claims. Which can be crippling. <\/p>\n\n\n\n

In most states, the\nminute you hire your first employee, you\u2019re required to have workers\u2019 comp. If\nyou don\u2019t, you\u2019ll face fines, penalties, possibly even prison.<\/p>\n\n\n\n

But it\u2019s a really\ngood policy to have anyway. <\/p>\n\n\n\n

Because if one of your employees falls ill, or gets hurt, as a result of working for you, workers\u2019 compensation insurance<\/a> can pay for medical bills, lost wages and legal expenses. <\/p>\n\n\n\n

What\u2019s more \u2014 no\nmatter who\u2019s at fault \u2014 it can protect your firm from injured employee\nlawsuits. <\/p>\n\n\n\n

And, worst case, it can provide death benefits to cover funeral expenses and support for an employee\u2019s dependents. <\/p>\n\n\n\n

<\/p>\n\n\n\n

The history of workers\u2019 compensation<\/strong> insurance<\/h2>\n\n\n\n

The idea of paying out to workers for bodily injury has been around for centuries<\/a>. It can be traced as far back as 2050 BC, in Sumeria (now part of Iraq) where compensation was awarded to workers who\u2019d lost body parts. <\/p>\n\n\n\n

The Ancient Greeks,\nRomans, Arabs and Chinese had compensation schemes, too, with \u2018schedules\u2019 for\nthe type of injury and its value. A thumb, for example, was worth half the\nvalue of a finger. While the amount of money you\u2019d get for losing an ear was\nbased on its surface area. <\/p>\n\n\n\n

These ideas form the\nbasis of workers\u2019 comp laws today. But it was a while before paying out workers\nfor bodily injury or disablement, legally caught on in the U.S. And it took The Jungle<\/a>, Upton Sinclair\u2019s book about the Chicago meatpacking houses, to do it. <\/p>\n\n\n\n

Exposing the appalling working conditions of factory assembly lines, it stirred up public outrage. And by 1911, workers\u2019 comp laws began to be passed in states, starting with Wisconsin. Mississippi bringing up the rear in 1948. <\/p>\n\n\n\n

<\/p>\n\n\n\n

What does workers\u2019\ncomp insurance cover? <\/strong><\/h2>\n\n\n\n

Workers\u2019 compensation\nlaws safeguard employees. If they\u2019re hurt, or become ill as a result of working\nfor you, they\u2019re entitled to benefits. Like having their medical bills paid and\nreplacing lost wages. <\/p>\n\n\n\n

Which is why, even\nthough your state requires it, as an employer you want worker\u2019s comp coverage\nin place. So you don\u2019t have to foot the bill for these yourself. <\/p>\n\n\n\n

Your policy can cover\nclaims brought for:<\/p>\n\n\n\n

         \u2022  Injury, or loss of limbs<\/p>\n\n\n\n

         \u2022  Repetitive motion injuries<\/p>\n\n\n\n

         \u2022  Work site accidents<\/p>\n\n\n\n

         \u2022  Medical treatment<\/p>\n\n\n\n

         \u2022  Lost wages (up to limits)<\/p>\n\n\n\n

         \u2022  Death and related costs<\/p>\n\n\n\n

<\/p>\n\n\n\n

What workers\u2019 compensation insurance doesn\u2019t cover<\/strong><\/h2>\n\n\n\n

Under workers\u2019 comp\nlaw, it doesn\u2019t matter who\u2019s at fault for an accident in the workplace \u2013\nemployee, employer, co-worker or customer \u2013 an injured employee is entitled to\nbenefits.  <\/p>\n\n\n\n

But there are some\ninstances where coverage might be denied:<\/p>\n\n\n\n

If the employee was injured:<\/p>\n\n\n\n