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In fact, the vast majority of states in the U.S. have mandatory workers’ compensation insurance for any business that has at least one employee, making it not only useful but integral to operating legally in the United States.

But what is workers’ compensation insurance? And how can it help your business?

What is Workers’ Comp Insurance?

Workers’ compensation insurance, provides a safety net for employees and employers in case of a work-related accident, illness, or death.

All US states—except Texas—mandate that businesses take out WC insurance, as it serves as a vital protection mechanism. Workers’ compensation insurance helps ensure that each employee receives the care and the compensation they need in case they are unable to continue working.

At FFVA Mutual, we offer comprehensive workers’ comp insurance packages that cover the costs of medical expenses and wages lost during the period of the injury or illness.

Who Needs Workers Compensation Insurance?

Since workers’ insurance is mandatory in the vast majority of states, you will very likely need it if you want to stay in compliance with the local regulations. Companies that don’t have a policy in place will not only have to cover the costs out of pocket, but can also face severe fines and penalties.

However, there are certain exemptions for workers in specific situations, so be sure to figure out what type of coverage is required and the best practices in your industry.

In the end, workers’ comp isn’t necessary merely because it is required by law: it is an essential safety net for the employee as well as for the business.

Without workers’ comp insurance, your company could be liable to compensate employees for their injuries, time off, and even damages. But when you have worker comp insurance, your employees can’t sue you for the injuries or lost wages because you offer them financial protection.

Benefits for Your Employees

The reason why so many states have mandatory workers’ comp insurance is that it offers a range of benefits to employees in a time when they are the most vulnerable.

In case of a work-related injury, illness, or death, workers comp can help protect the workers and their families, offering coverage for medical or rehabilitation costs, lost wages compensation, and even coverage for occupational injuries or health issues.

In case of death from a work-related event, workers comp also covers funeral expenses, which can offer much-needed financial relief for the family.

Benefits for Your Business

There’s no doubt that work-related accidents or illnesses can be very challenging for employees, but they can also put a strain on businesses without workers’ insurance, as the business will have to provide compensation themselves.

With a comprehensive work comp insurance package, companies don’t have to worry about medical bills or wages during the recovery period. Employers can rest assured that the plan will take care of employees and their families until they are back on their feet and ready to return to work.

With the help of vocational rehabilitation services covered by the insurance, you can also ensure your employees are getting the care they need. this way, they’ll have the best chance possible of getting back to work fully recovered.

In case an employee decides to sue for damages not covered by the insurance package, liability insurance can also help companies cover legal expenses from going to court.

Workers’ Comp Coverage

Since states usually have specific requirements for the workers’ comp insurance policies that businesses have to take out, the plans themselves are generally quite similar. In most cases, compensation will center around incidents that happened in the workplace or while performing tasks directly related to the job.

When that’s the case, employees can expect to receive compensation for medical expenses, rehabilitation, lost wages, and payment to the family in case of death.

However, there are also exemptions for when the work compensation insurance policy does not apply. Primarily, that involves cases when the injury did not occur on the job. However, the policy may also not apply if the employee was intoxicated or using drugs when they suffered the injury, or if they were taking part in an activity that violates the company’s policies.

Why Choose FFVA Mutual

When choosing a workers’ comp insurance policy, you not only need to find a company that is reputable and offers the coverage that you want, but also make sure that you are getting a competitive price.

At FFVA Mutual, we have been helping businesses take care of their employees for more than 65 years, and we have designed our offer in a way that makes choosing the right plan as easy as possible. Our account service team will help you find the right plan, and make sure that you implement proactive safety measures that will help minimize the likelihood of accidents.

When working with FFVA Mutual, you will not only get comprehensive workers’ insurance, but will also gain access to our no-cost safety training and resources that are designed using the best practices available today. We’ll also offer personalized care to your employees, helping find the best course of action in their situation and ensuring a smooth and quick transition back to work.

Finding the right workers’ comp package for your employees is essential, as it acts both as a safety net for both the employee and the business.

If you want to learn more about the insurance and claims management solutions offered by FFVA Mutual, get a quote today!