What exactly is Workers’ Compensation?
Even though we have all heard the term workers' compensation insurance - very few completely understand what exactly it is and what it entails.
Basically, workers' compensation is a type of insurance that employers purchase to protect themselves and their employees from financial loss in case of a workplace injury or illness.
Workers' Compensation is two-fold and provides protection to the employer as well as their employees.
For instance, say one of your kitchen employees is taking out the garbage, slips on ice and unfortunately breaks his leg. Thankfully, you have workers’ comp insurance so all of his medical expenses and lost time wages will be covered by the insurance, not a penny comes out of your pocket or the injured employees.
Once your employee accepts workers' compensation insurance they are protected from being terminated due to a claim and the employer is protected from future lawsuits from that employee for the claim.
Even though Workers’ Comp isn’t federally mandated, most states require it by law. States like New York run programs called Safety Groups that reward safety-conscious businesses by offering Group Discounts and Dividends.
Safety Groups are low-cost not-for-profit groups that return profits back to members in the form of a dividend. If you are interested in earning more about Safety Groups and seeing if your business could qualify visit us at https://www.friedlandergroup.com/safety-groups.
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