A workers compensation insurance policy is for the protection of employees that are injured while performing their job duties. Workers compensation insurance actually protects both the employer and the employee, as explained below. This coverage differs from a general liability insurance policy that covers injured third parties, not employees.

Workers compensation, or workers comp insurance came about in the early 1900’s, before which time employee injuries were handled quite differently. Before workers compensation insurance, an injured employee often times would have to sue their employer in order to be compensated for injuries received at work, while on the job.

Employee lawsuits could be extremely expensive and time consuming, for both the employee and the employer. This resulted in many employees that were injured on the job not receiving the proper medical care or compensation for their injuries. Fortunately, a better system came along in the form of workers compensation insurance.

As a no-fault insurance, workers compensation insurance pays for medical care regardless of the cause of the injury. However, when employees get medical coverage or disability payments under workmans comp insurance, they give up their right to bring a tort lawsuit against their employer.

Therefore, both the employee and the employer are protected by workers compensation insurance. The injured employee receives prompt medical attention and payments for any time off work due to the injuries, and the employer cannot be sued because of the injuries. This has greatly reduced the amount of employee lawsuits, as well as provided for a much higher level of medical care for injured employees.

The benefits of workers compensation insurance are many, and because of this, it is a requirement in most US locations assuming a company has more than a certain number of employees. While not perfect, workers comp insurance coverage has helped many employees and employers in their greatest time of need.

Find out how much workers compensation insurance will cost your company by visiting NetQuote. NetQuote allows you to quickly put in an online request for free business insurance coverage quotes. Find the best rates for all of your business insurance needs, including workers compensation insurance coverage.

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