Running any business comes with many risks. Therefore, you need the right types of
business insurance. It’s not always clear which types of policies cover which elements
of your business.
Confusion about workers’ compensation insurance
Unfortunately, some business owners are caught off-guard when an employee becomes
injured, and their liability insurance does not cover the employees expenses. General
liability insurance covers an array of accidents involving non-employees and customers.
In contrast, workers’ compensation covers only your employees.
Classifying workers’ compensation insurance
Workers’ compensation insurance is required by law. Businesses need workers’ comp if an employee experiences a work-related illness or injury. Specific coverage
requirements range from state to state. For example, California is known for strict
workers’ compensation laws. California law requires a business owner to carry workers’ comp insurance for employees who regularly work in California, even if the business headquarters is in another state. It is required even if the company only has one
Workers’ compensation insurance can cover the following.
Work-related employee injury: includes injuries that happen on-premises and off-
premises, as long as the employee is acting within the scope of their employment.
Depending on the state, workers’ comp may also cover psychological injury, such as
PTSD, and work-related stress that affects an employees ability to do their job.
Work-related employee illness: An employee becomes sick because they were exposed
to something toxic or harmful at work. Workers’ comp can also cover medical care for
occupational diseases that arise due to prolonged exposure to other workplace
Employee injury due to vehicle accidents during work: An employee must be driving for
work purposes only. This includes driving from one work site to another but not driving
to or from home.
Employee injury due to workplace violence; and employee injury at the workplace due
to natural disasters.
Not all injuries that occur on the job are covered. Exceptions in many states may
– Injuries caused by an employee’s drug or alcohol use
– Injuries that result from willful misconduct, negligence, or refusal to use a safety device
– Intentionally self-inflicted injuries.
Calming the Chaos of Workers’ Compensation Insurance
As an employer of record, Strategic Contracting Services provides workers’
compensation insurance coverage for employees and handles the administration of
claims and required filings.
SCS services include:
1) Providing quality workers’ compensation coverage.
2) Educating employees about workers’ compensation coverage because it provides the
safety net that helps injured employees get the medical and wage replacement benefits
they may need. This can get them back to work more quickly.
3) Administering the claims, including managing the details, documentation and
4) Offering workplace safety consultation and safety training because a safe workplace
is a necessity to guarantee your strong and successful business.
Without workers’ compensation coverage and safety planning, the medical expenses
associated with even one major workers’ compensation claim could cause irreparable
financial harm to the employee and your business. Give us a call today if you want to
learn more about how working with an employer of record like Strategic Contracting
Services can alleviate the headache around workers’ compensation insurance.