Industries characterized by more intensive physical labor can reap the benefits of providing workers’ comp insurance for their employees. This employee benefit takes care of employees who get sick or injured on or as a result of time on the job. Employees who sustain an injury requiring long-term care receive benefits to help pay for medical expenses. Worker’s comp also applies to impairments that develop over time on the job, such as carpal tunnel syndrome from typing too much. Among several other features, worker’s comp supplements an employee’s income due to an injury on the job. This benefit is an essential component of protecting your employees and enhancing your company’s productivity.
Offering worker’s comp insurance isn’t just a best practice; it’s the law in most cases. While most states require companies to carry worker’s comp insurance, organizations can still benefit from learning about their options and optimizing their workers’ comp. There are several advantages of offering worker’s comp insurance as an employer.
Regulatory Compliance
Compensation laws differ in each state. While some states require a minimum number of employees to require worker’s comp, others prohibit private insurance companies. There are many nuances that determine how your organization adopts worker’s comp insurance. The key is that it is mandatory to offer workers comp in most cases. While you should still strive for a best-in-class work environment, protecting against unintended injuries at work is required by law.
Protects the Company from Lawsuits
Anyone that runs a business knows how challenging a lawsuit can be. Between the rising court fees and time invested, dealing with a lawsuit can be a nightmare. One of the primary benefits of worker’s comp insurance is protecting your organization from lawsuits. This advantage also helps the employee because they are usually not able to sue for compensation in court but receive benefits through the worker’s comp insurance system. Worker’s comp typically pays for attorney fees and settlements if your company does end up facing a court case.
Tax Savings for You and Your Employees
In most cases, worker’s comp insurance is tax-exempt for the employee. This status depends on whether or not the employee is gaining from other support methods such as social security disability. If this is the case, worker’s comp could be taxable for the employee. Similarly, your organization could deduct workers’ comp from your taxes.
Worker’s comp and other insurance benefits can be a hard nut to crack. With all the nuances and regulations that go into selecting benefits packages, it can be overwhelming to think about which worker’s comp insurance is best for you and your employees. At Employee Retention Benefits (ERB), we’ll help you navigate the ins and outs of workers comp so you can unlock its value for your company. We understand that worker’s comp can be a bit of a doozy. We bring decades of experience in employee benefits to help your company with worker’s comp so that you can be a best-in-class employer.
