63 seconds isn’t a lot of time. Yet, its still enough for nine American workers to get injured on the job on average. That’s a whopping 12,600 employees a day.
With numbers like those, it’s no surprise that workman’s comp insurance policies exist. What is this important insurance, and what types of injuries does it cover? Do you need to buy a policy if you’re an employer in Illinois?
Learn everything you need to know about worker’s compensation in our state.
Workman’s Comp Insurance 101
So, what exactly is workman’s comp? Worker’s comp is a type of insurance policy for American workers and employers. If you have car insurance, then you likely have a good idea of how this system works.
First, the employer buys the policy. Then, the employer makes payments towards the policy. If an employee gets injured or ill at work, then the boss notifies the insurance company. From there, the policy provider conducts a brief investigation.
If everything goes according to plan, the worker will start getting compensation. They’ll get paid for losses associated with the accident.
In exchange, they agree not to sue the employer over the incident.
What Does Worker’s Compensation Cover?
Have you ever gotten hurt in an accident? If so, then you already know there’s a lot of hidden expenses associated with injuries. That begs the question, what does workman’s compensation cover?
In a nutshell, worker’s compensation will give benefits to anyone injured at work. This extends to individuals who get injured while performing work-related duties. This compensation should cover:
- Medical expenses
- Lost wages while out of work
- Compensation in the event of a wrongful death
There are some exceptions to this coverage, however. Self-inflicted injuries or accidents caused by a violation of company policy aren’t covered.
Who Needs Workman’s Comp Insurance?
If you are currently hiring employees in Illinois, then learning about worker’s comp is crucial to your success. Illinois law states that you must buy a policy to protect your employees.
Statistics show about 91% of Illinois employees are covered under worker’s comp laws. Only a few types of workers get excluded from coverage including:
- Members of LLC companies who exempt themselves
- Business partners
- Sole proprietors
- Corporate officers
Do you have workers who need coverage? Don’t wait around to buy your commercial insurance policy until it’s too late. Your business can get charged up to $500 a day if the state learns you’re not complying.
That’s a hefty bill that your company likely can’t afford.
On top of that, you might get held liable for your worker’s injuries if you don’t have worker’s comp. Those losses stack up fast, so it really is in your best interest to get insurance.
Keeping Employees Safe Across the Nation
In Illinois, employers must buy workman’s comp insurance for almost every hire. This mandate is in place to protect both employees and employers. Don’t risk your business by neglecting this important law.
Do you still have more questions about buying a policy? Are you looking for a reputable company to help protect your business? Get in touch with us now to get started on crafting your insurance plan.