Workers Compensation Insurance Coverage Facts and Myths

Workers compensation insurance coverage provides employees with medical coverage when they become ill, and also provides employers with protection of legal battles. The following are the main myths that cloud the truth about this type of insurance.

Workers’ Compensation Only Takes Care of Employees

This is not true. Although service to workers in terms of compensation is the main reason why workers compensation insurance coverage companies are formed, they come in the aid of the employer if workers try to use the clauses it provides to exploit employers

There are No Penalties for Not Complying

The truth is that failure to comply can lead to harsh penalties. There is no room for businesses to neglect their duties. Premium fraud is a very common business that is committed to unsuspecting workers

Small Businesses Cannot Benefit From This Insurance Scheme

This is far from the truth. Small-scale business owners can come together and seek workers compensation insurance coverage. This is called self insurance. It is cheaper but there is need for the business owners although they ought to be prepared for the losses they might face which might require them to inject more capital.

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