State Workers Compensation Insurance: The Advantages & Disadvantages

The workers’ compensation board in every state determines the cost of state workers compensation insurance which is what pays for your medical bills and other losses in case you get injured while on the job. Private insurers offer workers compensation, but an employer can also be self-insured so long as it meets the criteria.

Advantages

Workers compensation helps the employer avoid lawsuits that could possibly be filed by injured employees. The employees will have all the expenses taken care of during their injury periods as well as taking care of their dependents in case of death. Illnesses that result from work conditions are also covered by the state workers compensation insurance.

Disadvantages

Employers may choose to exempt their companies from workers’ compensation which means that some of the employees may not benefit from the insurance due to the work they are involved in. Any injuries occurring out of work will be taken care of by the employee since the workers compensation does not cover that. There is an ever rising cost of insurance rates which is due to rising medical costs and other related ones. As a result, it is becoming expensive for employers to purchase state workers compensation insurance.

 

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