Workers\u2019 compensation insurance, sometimes called workman\u2019s compensation insurance, workers\u2019 liability insurance or workers\u2019 comp insurance, covers your employees\u2019 medical expenses and at least some portion of their lost wages if they are injured on the job.
\nHow does workers\u2019 compensation insurance protect your business?<\/p>\n
Most states require companies to purchase workers\u2019 compensation insurance for their employees. A few states have \u201cpools\u201d of insurance that is available for you to purchase, but in most states, companies must find private workers\u2019 compensation policies.<\/p>\n
Because workers\u2019 comp insurance is mandated by law, small-business owners often think that it is just one more overhead expense that provides little benefit. But good workers\u2019 compensation insurance is actually an affordable benefit that protects both you and your employees.<\/p>\n
Following are the optional parts of workers\u2019 comp insurance policies that have an impact on the cost and value of the coverage for you and your employees:<\/p>\n