Exploring The Benefits Of Workers’ Compensation For Businesses

tgt3rhyht4Business owners have many responsibilities, with the main one being protecting their employees from financial loss in the event of an on-site accident. In the meantime, it is crucial to protect your own business from financial loss, just in case the injured employee decides to file a lawsuit against you and your company. There are many steps to take to ensure you are fully protected, but these steps should be taken prior to hiring any employees. Below, you will discover several benefits of workers’ compensation for businesses.

Pays For Hospital Expenses

One of the most influential benefits of workers’ is it will pay for the injured employees hospital expenses. If you fail to obtain this coverage, you will be forced to pay out of pocket for these costs. Depending on the employees’ injuries, you could be looking at hundreds or thousands of dollars that you will have to pay out of your business account. And, if you do not have the funds on-hand, you will need to find someway to get it, which could be taking out another mortgage on your business or even your home. Many business owners that find themselves in this position will be forced to sell their most prized assets, including a boat, land and a vacation home.

Now, if you were covered under a workers’ compensation policy, the hospital expenses would have been paid for, without you needing to contribute a dime to the cause.

Provides Disability Payments

If the employee is unable to return to work, it will still need to continue paying their salary since they were injured, while working at your business. With this said, paying an employee that is not contributing to the workforce can be a major financial loss for any business. Just imagine if you have multiple employees on leave due an on-the-job injury. The total costs could add up to a substantial sum in a very short period of time. Instead of taking these risks with your business, you should definitely obtain workers’ compensation insurance, because it will cover the injured employees’ salary.

This type of insurance will pay an estimated two-thirds of the employee’s regular salary, which is pretty significant. This will prevent you have needing to pay these costs out of pocket, which could potentially lead you to bankruptcy, especially if multiple employees are on leave for months or even years.

Covers Rehabilitation Therapy

Depending on how severe the employee is injured, they may need to undergo rehabilitation therapy. The workers’ compensation physicians will decide whether or not the employee would recuperate faster and better with physical therapy. Believe it or not, this service can be rather expensive and last for several days or weeks, depending on the type and severity of the injury. Again, if you have several employees that are undergoing rehabilitation therapy simultaneously, the expenses with soar up extremely quickly. Businesses that are part of the manufacturing, health care and construction industry are going to be at a higher risk than those in other industries.

Workers’ compensation covers rehabilitation therapy expenses, which will protect you from financial loss and ensure the employee’s health is restored as soon as possible. This is a significant saving that will not only protect your business from bankruptcy, but also give you peace of mind.


It is important to note that workers’ compensation does not cover all on-the-job injuries. If the employee is found to be under the influence of drugs or alcohol, when the injury occurred coverage would. Now, this does not necessarily mean that you are out of the woods just yet, because the employee can still file a lawsuit against you. This is where a workers’ compensation attorney will come into play. This professional specializes in workers’ compensations laws and will be there for you throughout the litigation process.

Published by Kidal Delonix (1196 Posts)

Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.

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