While employers have a legal obligation to provide safe workplaces, accidents are inevitable. Workers’ compensation laws mandate that workers’ compensation insurance is offered by nearly all employers in nearly all states. This type of coverage was designed to be the only actionable recourse against employers in the event of workplace accidents.
Under a workers’ compensation policy, an employer is liable for covering the medical costs for employees who are injured on the job and providing financial compensation for family members of a deceased employee in a timely manner. In turn, employees and their families waive their rights to sue the employers, making the timely compensation the exclusive remedy. However, if an employer is found to have committed an intentional, harmful act or violated any laws, it may find itself in hot water.
It is also worth noting that workers’ compensation is not a reasonable substitute for health insurance coverage. In some cases, a health plan will not cover medical bills that are the result of workplace injury for an employer that cancels its own worker’s compensation insurance.
There are practices that can supplement your workers’ compensation policy to reduce your risks of lawsuits, such as risk managers, disability programs and providing safety training. To evaluate areas where your business may be vulnerable turn to the experts at Bukaty Companies Property & Casualty.