Why Workers Compensation Insurance Is Important
Workers compensation insurance is a mandatory policy purchased by employers for compensation to their employees whenever any of them sustains an injury at work irrespective of who is at fault. It also protects employers from being sued by injured employees.
Florida is known to be strict on this policy so Florida workers compensation insurance is one of the most enforced insurance policies in the United States. The implication of this insurance policy is that when any employee gets ill or gets hurt on duty, all his or her medical bills will be borne by the insurance company. It does not end there, he or she gets wage complementation if the injury leads to wage slash or total loss of wage.
Since some jobs are prone to accident more than others, premium paid on each employee is calculated based on their job description. For example, since a truck driver is more prone to accident than a secretary that is always in the office, the premium paid on a truck driver will be way higher than the one paid on a secretary.
Some criminal employers still dodge this policy. This is not sensible at all. This is because when an accident finally occurs you may end up losing all you have been saving criminally over the years. This is because you will foot all the victim’s medical bill, continue to pay his or her wage completely whether (s)he works or not and most importantly, you will face the penalty.
Also remember that you do not have legal immunity since you have been evading the insurance policy, a greedy or callous employee may take advantage to sue you for several millions of dollars. So, it is cheaper, better and even wiser to purchase the policy for your employees.
In summary, as an employer you have to purchase this insurance policy for your employees because of the following reasons.
•It is mandatory by law. This simply means you will be punished if you don’t. Ignorance is never a tenable excuse.
•It is a cheaper way of protecting your employees as they are your most valuable assets. Accidents will always occur, you can only reduce the frequency with which it occurs
•It is portable. If it is in the line of your business activities for some of your employees to travel regularly from one state to the other, this policy covers them as long as it is well spelt out in the policy.
•You will be paying a certain amount of money as premium, this makes budgeting easy. There will not be any unexpected settlement of medical bills of any employee. Whatever you plan to spend is what you will spend.
In conclusion, workers compensation insurance policy creates a win-win situation for both employees and employers and should never be evaded by employers.