Workers compensation insurance allows you to financially provide for workers who get injured on the job. This keeps employees happy and mitigates the odds of them taking you to court over an injury. However, what far too many entrepreneurs do not realize is that it can protect your company in other ways as well. 

Specifically, workers comp can seriously boost employee retention. How does this work, and how can it help your business succeed? Below, you will find all the information you need. 

Why Retention Matters in Today’s Workforce 

As an entrepreneur, employee retention should be one of your highest priorities, especially if you are a new business owner wondering about commercial insurance. A high turnover rate can be very expensive for your company and have a negative effect on the performance of the business as a whole. Left unchecked, high turnover rates will make it increasingly difficult to operate, which can hurt your bottom line and cause lasting damage to your reputation. 

As you can tell, retention is a vital goal for any business. And the importance of such retention is tied to the importance of workers compensation and other benefits. Below, you will find out more about why that is and why this coverage should be part of your small business insurance. 

The Key Role of Benefits in Employee Retention 

A recent survey in “Business Leadership Today” discovered that 66% of employees are reviewing offered benefits before deciding whether to remain in a current job or look for a new one. Workers comp is one such benefit, and a good program may make the difference in whether your best employees stay or start looking around for better benefits. 

Workers Comp as a Retention Tool 

Obviously, many employees would prefer benefits like better pay and more vacation days. Compared to that, having good workers compensation insurance may not seem that important. 

In reality, such a policy is vital to the retention of your hardest-working employees. Such policies establish security and trust while safeguarding the health and safety of your workers. 

Security and Trust: The Foundation of Loyalty 

Getting reliable workers compensation insurance signals that you are heavily invested in the safety of your employees. This fosters goodwill among current staff and helps you hire better talent, all while cultivating a powerful foundation of loyalty. 

Health and Safety Concerns Addressed Through Workers Comp 

Getting workers compensation insurance can help with both short-term and long-term health and safety. For example, it is reassuring for employees to know they will be financially covered in the event of a slip-and-fall accident or even things like carpal tunnel syndrome (make sure you brush up on what workers compensation covers). Workers comp allows those employees to obtain needed medical care, which also helps prevent untreated injuries from turning into anxiety or depression that will further impact their state of mind and workplace performance. 

Going Beyond Compliance: Strategic Approaches to Workers Comp 

Most businesses of a certain size are required to get workers compensation insurance. However, not all businesses with this protection are created equal. 

If you really want to get the most out of this coverage, it is important to be strategic. That means creating a safety-conscious workplace culture, establishing an effective return-to-work program, and being completely transparent about your policies. 

Building a Corporate Culture Around Safety and Protection 

No employee wants to be injured, and no employer wants to pay out for preventable injuries. To keep everyone happy, it is important to institute workplace safety programs that encourage accountability and protection. Remember: a safer culture means fewer accidents and injuries. 

Establishing an Effective Return to Work Program 

You must have a solid return-to-work program for employees coming back after getting injured. Make sure you have a formal written program that documents how and when to report claims and who reports to whom. Combined with the aforementioned culture of safety, this will keep your business running smoothly. 

Creating Transparency Around Workers Comp Policies 

Finally, make sure there is no confusion among your team about any aspects of workers comp. This is meant to be a benefit that incentivizes workers to stick with an employer who cares about their safety. If employees are too confused to take advantage of this program, then it will not have the desired effect of retaining your top talent. 

Start Offering Workers Comp for Your Employees With InsureOne 

Now you know about the importance of workers compensation. You know more about what it covers, why workers love it, and how it helps prevent that dreaded turnover. But do you know where you can find the best compensation coverage from the best carrier? 

At InsureOne, we are just as devoted to your business as you are. Ready to work together to give your company the protection it deserves? If so, come get a quote online. Of course, you can also pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come find an InsureOne office near you. 

Workplace safety and liability issues are significant concerns. Without protections in place, both employees and employers alike may be very vulnerable if a major accident happens. 

Workers’ compensation exists to provide the protection everyone needs. But, unfortunately, most people don’t know what this compensation is and what it covers. 

Do you want to learn more about workers’ compensation? Keep reading to discover everything you need to know! 

What is Workers’ Compensation? 

Our guide is going to walk you through everything you need to know about workers’ compensation. But let’s start with the biggest question: What, exactly, is this type of compensation? 

This compensation is actually a kind of insurance policy that an employer takes out. The insurance helps to pay benefits out to employees who suffer from a workplace-related injury or illness. 

In this way, employees who are injured on the job don’t have to worry about losing all of their income in the time it takes them to recover from the injury. 

Are Employers Required to Have Workers’ Compensation? 

Whether you’re an employee or own your own business, you’re probably asking a particular question right now: Do employers have to purchase workers’ compensation? The answer to this question is both “yes” and “no.” 

The answer is “yes” in the vast majority of states because state governments require employers with at least one employee to purchase this insurance. Currently, only Texas does not have a mandate on employers purchasing workers comp insurance. 

We always recommend that employers purchase this type of coverage. Otherwise, the legal fees and potential medical bills that come from employee workplace injuries may be enough to put the employer out of business! In most situations, once an employee accepts their workers’ comp benefits, they have given up the right to sue the business owner. 

What Does Workers’ Compensation Actually Cover? 

Because workers’ compensation is an insurance policy, it’s essential for employers to check the fine print. Employees, too, should know exactly what is covered by this policy. 

While the exact things that are covered may vary from plan to plan, most workers’ compensation policies cover employee wages while they are out of work. As we noted before, this ensures that a covered employee is not out of a paycheck indefinitely. 

Additionally, compensation typically pays for medical coverage. Because hospital bills, prescriptions, and other medical fees can easily put someone in major debt, this protection is especially important. 

Should the employee wish to sue their employer, this form of compensation can even help pay legal fees! It offers robust protection for employees performing work-related activities out of the office (such as driving around and making deliveries). 

Who Actually Pays Out For Workers’ Compensation? 

As you can tell, a good workers’ compensation plan can help pay for a great many things. Because of this, many workers can’t help but wonder: Who is actually paying for all of this? 

Even though the employer takes out the compensation plan, the actual compensation is paid for by the insurance company. This is where the paperwork comes from: As with automobile insurance, employers and employees must provide the documentation necessary for the insurance company to pay anything at all. 

If you own a newer business, you may be tempted to not get workers’ compensation as a way of saving money. But as our guide will soon reveal, it is often much more expensive in the long run for your business to skip out on this important safeguard. 

Why Employees Need Workers’ Compensation Insurance 

Whether they realize it or not, both employers and their employees need workers’ compensation protection. To help you understand why we are going to take a closer look at the benefits this insurance provides to employees. 

We already noted the primary benefit: Thanks to this insurance, covered employees who are injured at work don’t have to worry about losing out on their only source of income. Similarly, these employees don’t have to be worried about getting buried in a mountain of medical debt as they recover from their injury. 

Finally, workers’ compensation can be very empowering to employees. It provides the financial freedom for them to pursue legal action against negligent employers, if possible. On top of that, employers who understand how easily their workers can sue have that much more incentive to keep the workplace safe. 

Why Employers Need Workers’ Compensation Insurance 

Now you know more about why employees benefit from workers’ compensation. But do you know why this type of insurance is equally important to employers? 

First, while workers’ compensation can help workers sue an employer, most policies also provide the employer with liability coverage. This helps to pay for various legal fees as the employer defends himself in court. Without such protection, a prolonged legal battle would be enough to end most small businesses, even if they eventually won the case. 

Second, without this insurance in place, you would likely have to pay for things like the medical bills of injured employees in order to keep them from suing you. And these out-of-pocket costs are typically far greater than regularly paying for workers’ compensation. 

Finally, a good workers’ compensation policy can actually be a recruitment and retention tool for your business. When employees realize you have a policy that helps to protect their financial interests, they are likelier to work (or continue working) for your company. 

What is Typically Not Covered by Workers’ Compensation? 

While workers’ compensation covers many things, there are a few things it doesn’t cover. While you would need to check your own policy for the specifics, here are a few things that are typically not covered by these policies. 

For the most part, workers’ compensation does not payout if the employee was clearly at fault. This includes when an employee is working in an impaired state (as revealed by blood/alcohol tests), if the injury was self-inflicted, or if the employee was injured while in the midst of breaking the law. 

Get the Best Workers’ Compensation Today 

Now you know more about what workers’ compensation is and what it covers. But do you know where employers can get the best compensation plans? 

Here at Insure One, we make it easy for employers to protect themselves and their employees. To see how we can keep everyone safe, come explore our workers’ compensation options online today! Alternatively, you can discuss your options with us at the nearest office or by phone at 800-836-2240. 

Required by most states, workers’ comp is highly recommended for all employers. But what if it’s not mandated? Do you still need workers’ compensation insurance, and how can it protect business owners? What are the rules for workers’ compensation? We’ll answer those questions and more below.

What is Workers’ Comp?

Workers’ compensation insurance—also known as workmen’s insurance and workers’ comp – protects businesses and employees from financial loss due to an employee getting hurt or sick from a job-related cause. This type of insurance provides protection and employee benefits to workers from the high cost of treatment, loss of pay while out recuperating, etc. It also shields businesses from debilitating financial damages and lawsuits based on claims.

What Does Workers’ Compensation Insurance Cover?

Workers’ comp claims can only be made if an employee becomes injured or sick due to their job duties. The most common work injury causes include:

• Slips and falls
• Traffic accidents in company vehicles
• Toxic fume inhalation
• Exposure to loud noise
• Falling objects
• Repetitive strain injury
• Moving machinery 
• Fire and explosions

Workers comp covers injuries from events that occur while the employee is at work, no matter who was at fault. These events can also include natural disasters and terrorist attacks.

If an employee is in a vehicle for work purposes, workers’ comp covers the claim. However, it does not cover accidents that occur while they are driving to and from work. Workers’ compensation also provides death benefits for the worker’s dependents if they die while on the job.

How Workers’ Comp Insurance Can Protect Your Business

Does workers’ comp pay off? If one of your employees hurts themselves while on your clock, it covers the treatment for their injury or illness. Medical expenses due to on-the-job injuries can be outrageously high. If you don’t have workers’ comp insurance, you could be responsible for paying the medical fees out of your pocket as a business owner. 

Keep in mind that when you have workers’ comp insurance, you can exclude yourself from the coverage as long your health insurance limits are adequate. The cost of this type of insurance includes premiums, deductibles, and administrative costs. 

Workers’ Compensation Laws

What are the rules for workers’ compensation? In a nutshell, you pay to protect yourself and your employees in case of accidents or disasters. But there are exceptions. Workers’ comp does not cover injuries that happened off the clock since that is on personal time. Self-inflicted injuries are also not included, as well as negligence and permanent or stationary injuries. Some state laws may limit the amount an injured employee can recover from an employer and eliminate co-workers’ liability in most accidents.

Know your state laws and specific requirements when it comes to workers’ comp insurance. Consult your insurance company to understand your policy, obligations, and factors that can affect your premiums.

Protect yourself and your business with workers’ comp insurance from InsureOne. Get a free quote online, over the phone, or at one of our offices near you.