An employer faces a significant loss exposure for liability that arises from injury or death to employees – either under tort law or because of government statutes. Coverage for this loss exposure is largely excluded under other liability policies.
Workers’ Compensation Insurance allows your business to ensure payments and cover expenses if an employee is injured from a work-related accident. This insurance can cover financial obligations such as medical expenses/treatment and lost wages.
If your business does not offer Workers’ Compensation, serious injuries that occur on the job will become the responsibility of the business. In addition, many states enforce strict fines and penalties for not carrying Workers’ Compensation Insurance.