Workers’ compensation insurance is a plan that provides coverage for employees injured on the job in Pennsylvania. This insurance is a requirement for most employers. Beyond just offering benefits to injured employees, this insurance protects employers. It is an important coverage that you should have if you have a business and employ any employees.
As NCMIC explains, workers’ compensation creates a no-fault situation when an employee suffers an injury. This means your employee cannot sue you for negligence or fault in the accident. The employee’s needs are met through the system. It also provides the injured employer with a guarantee of coverage for any injuries with possible reimbursement for lost wages.
Furthermore, the system protects your assets. If an employee would sue you for an injury, you could face huge losses. It could ruin your business. However, when you have workers’ compensation coverage, this is not a concern because the insurance covers you for any liability.
The state runs the workers’ compensation system, so there is very little that you have to do to process claims. Essentially, you handle paperwork up front and then as needed, but the state processes the claims and makes the determinations. It is fairly easy for you as long as you pay your premiums and keep your coverage current.
Workers’ compensation benefits everyone. It keep businesses protected. It ensures employees have coverage when they need it the most. It provides a balanced and fair system that helps when there is an accident. This information is for education and is not legal advice.