Workers Comp 101 – What Business Owners Need To Know

Workers compensation is something that most business owners have had to deal with at some point in their career as an owner. It is a necessary aspect to owning a business and it is in place to protect both the employer and the employee. Choosing worker’s compensation is mandatory to business owners that plan to hire employees and is essential to run a business effectively. While it is important to have, many business owners do not understand all of the aspects to worker’s compensation.

What, Exactly, is It?

Worker’s compensation is a form of insurance that was created with the safety of employees and the protection of employers in mind. It is a way for businesses to cost effectively pay employees’ medical bills and missed income when they are hurt on the job. If you’re still not sure if you think this is a good option for your company, contact a lawyer (like Bronson Jones & Co) for their advice to see if this is really a good option for you.

How Does It Help Business Owners?

When employers choose to use worker’s compensation to help their employees while they are on the job, it prevents that employee for suing the company for neglect or unsafe practices. This is a great way for employers to stay protected from angry employees that have been hurt while on the job.

How Does It Work?

Worker’s compensation comes in many different forms and can be paid for in many different ways. The most common way is being taken out of a weekly or biweekly paycheck to ensure that it is paid for at all times by both the employee and the employer. Other ways that it can be paid for are in one lump sum by the employer or it can function as a type of health insurance for the employee to pay at predetermined times.

How Does Worker’s Compensation Know When an Employee is Injured?

It is imperative that business owners communicate to their employees how important it is that they report all injuries that they sustained on the job as soon as the injury happens. Doing this will allow the employer to make a claim in a timely manner that will help the employee get the help that they need as soon as possible after the injury has occurred.

Is There Anything Wrong with the System?

Like most insurance plans, worker’s compensation is not a perfect system and does have flaws. One of the biggest flaws that will take a lot of hard work to figure out is employee fraud in relation to on the job injuries.