Workers' Compensation Insurance For Small Businesses

One way that small business owners can help their employees is through workers' compensation insurance. As employers, small business owners are legally responsible for providing a safe environment.
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However, accidents are inevitable, and some work environments pose health risks. With this in mind, here are the basics of workers' compensation insurance that small businesses must keep in mind.

Workers' Compensation Insurance for Small Businesses
Simply put, workers' compensation insurance is a policy that provides benefits to employees who experience job-related injuries and illnesses.

While there are limits, employees suffering from work-related injuries or illnesses can benefit from workers' compensation insurance, regardless of who was at fault. Specifically, this type of insurance provides coverage when:

• The employee is eligible for benefits; and
• The illness or injury is work-related

Coverage for Small Businesses
Workers' compensation for small businesses can cover workplace-sustained injury or even in the course of employment. For example, a delivery driver who suffered injuries in an auto accident while at work can be qualified for workers' compensation.

However, remember that these injuries don't have to be caused by accidents to be covered by this insurance. Workers' compensation insurance also has coverage for illnesses related to employment, depending on the state definition.

A good example of this is lung diseases sustained by workplace exposure to chemicals. Also, keep in mind that rules vary across states and industries. Lastly, it's also important to consider the type of employees you employ. Generally, some types of employees are excluded from workers' compensation benefits, including:

• Part-time domestic workers (maids, nannies)
• Selected agricultural workers
• Business owners, partners, and sole proprietors
• Volunteers 

Limitations and Restrictions
Like other insurance types, workers' compensation insurance also has limits and restrictions. For instance, an employee's compensation benefits may not pay the full billed amount. Depending on the employer's policy, there may be limits for claims or cost-sharing arrangements.

Generally, this type of insurance doesn't cover injuries employees sustain when intoxicated or using illegal drugs. Employees may also be denied coverage when:

• Injuries are self-inflicted
• Injuries are sustained while the employee is committing a crime
• Injuries result from violating company policies
• Injuries were sustained while the employee was not on the clock

Conclusion
Workers' compensation insurance is important coverage even for small businesses. Since accidents and injuries are inevitable, employers must find a way to protect their workers against high medical costs.

At American Eagle Insurance, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (225) 667-7377 or Click Here to request a free quote. Coverage discussed in this article is not guaranteed. Please contact our agents today to ensure that your needs are being met and learn more about your policy. We are happy to help!