Are you putting your electrical contracting business at risk? And what about the livelihood of your employees; is this on the line too? If you don’t have Workers Compensation insurance then the answer is YES.
Consider this, according to the US Bureau of Labor Statistics, there are as many as 7500 non-fatal worker injuries and illnesses for electrical and wiring contractors alone. Makes you rethink this insurance, doesn’t it?
In this article, you will find out why Workers Compensation is necessary for your electrical contracting business’s success. Let’s look at how it should be the cornerstone of your insurance coverage.
What is Workers Compensation insurance?
Workers Compensation insurance, also known as Workers Comp, pays out your employees if they are injured or disabled while carrying out work related duties.
Coverage provided by this insurance
- Missed wages
If your employee misses work due to a work-related injury or illness, Workers Compensation will pay for their wages while they recover.
- Medical expenses
It helps provide medical coverage to your employees that need to be treated medically for injury or illness.
- First aid treatments
These are costs associated with all medical care levels, including care for minor injuries.
- Permanent disability
Coverage for injury severe enough that it prevents your employee from working in the same field for the rest of their life. In this instance, they will need financial support for an extended period. Workers Compensation helps cover this requirement, so you do not have to pay for it out of pocket.
- Vocational rehabilitation
If your employee is seriously injured and needs ongoing care to help them rehabilitate their injuries and return to work, this insurance ensures they have the support they need.
- Death benefits
If your employee passes away in a work-related accident, death benefits ensure that expenses like funeral costs are covered.
Word to the wise
If you do not carry Workers Compensation insurance, you open yourself up to legal and financial liability if your employee is injured or contracts an illness on the job.
Not only will you be held personally responsible for your employee’s medical expenses, but there is also a chance that your employee will sue you for additional damages if you do not have this insurance.
Other considerations
Most states in the US have legally mandated that businesses carry Workers Compensation insurance. This means that, as an electrical contractor, if you have employees, you are legally required to have Workers Compensation insurance.
Even if you are not legally required to carry this insurance, ensuring your business has Workmans Compensation results in your business being a far more attractive prospect to future employees. Furthermore, by agreeing to receive Workers Compensation in the case of a work-related injury or illness, your employees also waive their right to sue you for negligence.
This ensures that both you and your employees are protected. Your employees are covered in the case of medical expenses, while you receive coverage from legal liability.
What is not covered by Workers Compensation?
- Injuries as a result of a fight caused by an employee
- Injuries intentionally caused by an employee.
- Injuries to an employee that is intoxicated
- Emotional injuries that have no physical component
- Injuries that occur during an employee’s commute to the workplace
Furthermore, Workers Compensation only protects you from legal action undertaken by an employee due to an injury that occurs on the job. It does not protect you from legal prosecution for other reasons like discrimination and wrongful termination.
Wise up on Workmans Compensation insurance
Start by protecting your business today. Read up on the advantages of having Workers Compensation insurance in place for your employees. Speak to your insurance agent and don’t leave workplace injuries or illnesses to chance.
