Workman's Compensation - The Necessity Of Carrying Workman's Comp Insurance

By their very nature, construction sites arecase of the death of the employee) are fully
particularly dangerous places to work for employees.compensated, no matter who was at fault - the
Heavy machinery, bulky materials, steel girders andcompany, or the employee. The amount of insurance
potentially hazardous power tools and earth movingpaid out is in proportion to medical bills, lost wages, or
equipment are used, often leading to severe andpermanent disability. This also means that employers
sometimes even fatal accidents. That is why it isreceive immunity against further civil lawsuits by
absolutely crucial for construction companies to carryinjured employees.
not only workman's comp insurance but also generalHow does a company obtain workers comp
liability insurance to protect them from potentialinsurance?
claims resulting from injured employees as well as theEmployers purchase workman's compensation
possibility of injured clients or even casual bystanders.insurance from private insurers. Insurance premiums
In most states, all employers are required to providevary depending on the number of employees.
workers comp insurance for employees by law.What benefits do workers receive from a workers'
Failure to do so will not only result in serious penaltiescomp policy?
but also possible imprisonment for breaking the law.All medical bills are taken care of and employees may
The company will also be left in the unenviablealso be compensated for temporary or total disability.
position of having to settle injury and disability claimsAdditional payments will be made if the worker has
themselves - no matter whether the employee wassuffered a permanent disability such as the loss of
negligent or at fault. These damages may very likelylimbs, damaged eyesight etc, or is unable to return to
run into several hundred thousand and even millions,work due to the severity of the injuries. If the
of dollars depending on the severity of the accidentemployee is killed while on duty, the insurance is paid
sustained and may end up financially crippling orout to their dependents.
bankrupting the company. That is a good reasonMaintaining coverage
why, even if workers compensation insurance is notThe onus is on the employer to maintain workers
mandatory, it is still a vital precaution for anycomp insurance at all times. Failure to do so will result
responsible company with employees to carry thisin penalties or imprisonment, as well as being liable for
insurance.the cost of injuries sustained by workers. For minor
How does workers comp insurance work?accidents under $1000, the company may elect to
Workers comp insurance policies covers the companypay the bills themselves.
against all liability and damages resulting from injuries,Injuries
illness or death suffered by employees as the resultIn the case of injuries and accidents, the employee is
of occupational accidents, hazards or negligence. Inobliged to provide immediate medical treatment for
the event of an accident, illness or fatality at theworkers and must also notify the insurance company.
place of work, employees or their beneficiaries (in the