As a business owner with employees, an important insurance to have is workers’ compensation insurance. In many states, this type of insurance is legally required for conducting business. Even in states without the requirements, it is often a good idea to have. Before you start discussing your options with your insurance agent, it is beneficial to know the main details about this type of insurance to help you make an educated decision.

What is Workers’ Compensation Insurance?

Workers’ compensation protects your employees from any illnesses or injuries that occur on-the-job. The insurance provides payment to the injured employee for time lost as well as medical expenses. It protects you as the owner from any lawsuits that might occur in connection with the accident or illness as well.

If you are found negligent or you purposely create an unsafe working environment, you might still be vulnerable to lawsuits even with adequate coverage. However, as long as you meet OSHA requirements, then your workers’ comp policy should protect you against liability for the injuries or illnesses that happen to your employees. Your individual policy will detail the instances under which you might still be vulnerable.

Contact a Direct Service Insurance agent to discuss workers’ compensation insurance at 805-641-0422.