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How Does Workers Comp Benefit Employers
Workers Comp
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How Does Workers’ Comp Benefit Employers? | Pie Insurance | Save 30%

Workers’ comp insurance protects both employers and employees. Learn more about the benefits of workers' compensation and find out what you could save.

Workers’ comp insurance reduces an employer’s risk of being sued by employees. In turn, workers’ comp provides financial protection and medical care for employees who are injured on the job. Almost every state requires that businesses with employees carry workers’ compensation coverage. Employers without coverage could face fines or prison time.

Workers’ comp insurance benefits both employers and employees. As a business owner, workers’ compensation insurance reduces your risk of a crippling financial loss in the case of a serious accident involving one of your team members. And your employees who are covered by workers’ comp can receive financial protection if harmed while performing their regular work duties.

The grand bargain

Workers’ compensation was established more than a century ago and has been referred to as the “grand bargain” between employers and workers. Ultimately, the workers’ compensation system is a cooperative arrangement to reduce conflicts that can arise between businesses and employees when employees become injured on the job.

The “grand bargain” is this: no matter who is responsible for the workplace injury, the employee will receive workers’ comp benefits, and in return, the business owner will be protected from lawsuits related to the injury.

Benefits of workers’ comp

If you’re an employer, there are three main ways having workers’ comp insurance benefits you:

1. Workers’ comp protects your employees

If, due to an incident at work, your team members were injured, you’d want to be able to care for them. Employees often cannot afford significant out-of-pocket for medical expenses and recoup lost wages. When covered by a workers’ compensation policy, employees who have sustained a work-related injury recover lost wages and other accommodations.

 2. Workers’ comp protects you

If you do not carry workers’ compensation insurance for your business, employees or their families could sue in civil court for workplace injury or death. This situation could be financially devastating for business owners who are uninsured and could even open them up to a criminal investigation. Running a business can be fast-paced and stressful. Business owners need to reduce their risks of complicated legal problems whenever possible. Investing in workers’ comp insurance is one important way to do this.

3. It’s the law

Typically, business owners are productive members of society. They create jobs, contribute to the economy, and improve the workforce. When developing their business plans, most entrepreneurs do not envision themselves being prosecuted, fined, or even imprisoned for the work they hope to accomplish. However, this outcome is a real possibility for business owners who do not comply with workers’ comp laws. Each state has an agency that manages its workers’ comp program, and nearly all states require workers to be covered. The U.S. Department of Labor maintains contacts for each state’s workers’ comp agency. To learn about the laws in your area, view the state workers’ compensation map, visit your state’s site, and follow its laws.

Insuring your workers is a wise investment. If you’re a small business owner seeking coverage for your team, find a company that offers workers’ comp policies made just for small businesses. At Pie Insurance, we offer:

• An easy and convenient online quote process
• A team of professionals who make workers’ comp easy to understand
• Specialization in insuring small businesses, saving you up to 30% on premiums
• Insurance rated A- by A.M. Best

Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.