Workplace injuries and illnesses impact both employees and employers.
If you lack workers’ compensation insurance, you may find yourself footing the bill for all medical expenses and lost wages resulting from employee injuries.
Additionally, without a workers’ compensation strategy in place, you may also face a greater risk of lawsuits.
Your employer branding could also take a hit.
This is where workers' compensation becomes essential.
It offers financial and medical support to employees who are injured or fall ill while performing their job duties.
Keep reading to learn more about what workers' compensation is.
Workers’ compensation is a type of insurance program.
It provides important benefits to employees who get injured or become ill while working.
The main goal of workers' compensation is to protect both employees and employers.
If your organization doesn't have its own Human Resources department, an HR Business Partner can be an external resource to help your workers' compensation program run well.
Workers' compensation provides a range of benefits for employees while ensuring that employers comply with legal requirements.
Workers' compensation helps pay for medical costs related to job injuries or illnesses, such as:
When employees cannot work because of their injuries, workers' compensation gives them partial pay to help with lost wages:
Generally, programs cover approximately two-thirds of a worker's gross salary.
Workers' compensation helps with both temporary and permanent disabilities caused by workplace injuries.
To help employees recover and return to work, workers' compensation may cover rehabilitation and therapy services, such as physical therapy and occupational therapy.
Programs designed to support injured workers in their return to employment often include job training, skill-building opportunities, and assistance with job placement.
If a worker dies in a work-related accident, workers' compensation helps their beneficiaries in these ways:
When it comes to Worker's Compensation, there are several situations you should familiarize yourself with alongside your HR management team.
When workers accept workers' compensation, they give up their right to sue their employer for negligence.
At the same time, employers take on some responsibility, which protects them from the higher costs that come with negligence lawsuits.
Workers' compensation payments are susceptible to fraud.
Employees may falsely assert that an injury happened on the job, exaggerate the severity of an existing injury, or even invent an injury altogether.
Even if you're a small business, it's important to be cautious when discussing cases where worker's compensation is necessary.
In Canada and the United States, only regular employees are eligible for workers’ compensation; independent contractors do not qualify.
Self-employed individuals have the option to purchase personal coverage, though it is not mandatory.
Additionally, in Canada, certain industries, such as dentistry, banking, and insurance are exempt from workers' compensation.
In Canada and the United States, employers are required to provide workers’ compensation insurance for their employees, with some exceptions for specific industries or provincial and state laws.
To understand what applies to you, it’s important to consult with your talent management team.
Workers' compensation is an insurance program designed to protect both employees and employers from work-related illnesses and injuries.
A strong workers' compensation program protects your business from reputation damage, liability risks, and financial problems.
On the flip side, employees can feel safe knowing that under your management, they are well protected.
If you still have concerns about workers' compensation and lack an HR partner, TROIS Collective is here to help.
Feel free to schedule an appointment with us here.
