Home Business What is Workers’ Compensation?

What is Workers’ Compensation?

by Olufisayo
Antrix Corporate Solutions Ltd
workers compensation

Every business owner needs to understand what workers’ compensation is and how the system that ensures it is paid works.

Doing so will greatly reduce the chances of your having to pay this additional expense. As well as provide you with leverage you can use to maintain good control over your workplaces so that you can keep your workers and customers safe.

Below, we briefly explain what it is. If, after reading this article, you feel that you need to know more we suggest that you visit this Orangeburg personal injury lawyer site. There you will find several articles that cover the subject in far more depth than we can do here.

Make sure you understand what your responsibilities are

You should also read all of the health and safety legislation that relates to your industry. If after doing that, you are still not completely clear about workplace health and safety ask the organization that enforces those standards in your area and industry for further advice.

What is workers’ comp?

In virtually every country, business owners are expected to keep their workers safe in the workplace. They also have a duty of care for their customers and visitors.

Should there be an accident that leads to a worker being hurt, they can sue the business owner for compensation. Customers, visitors, or passersby who are injured by your failure to do something can also potentially sue you.

How much do you have to pay?

Typically, the amount that is to be paid is dictated by the seriousness of the injury. At the very least you will have to pay their medical bills. That includes the initial treatment, all of their drugs, and, often, physiotherapy as well.

You will normally have to compensate them for lost income. So, for the entire period that they are unable to work, you will need to pay them a full wage. If they have a second job, you will have to cover those lost wages too.

Also, if the injuries are so serious that they are unable to return to their former occupation you will have to pay for future lost earnings. The cost of this can be astronomical, especially if the person is relatively young when the accident occurs.

Typically, the injured party’s personal injury lawyer will also try to recover the cost of ongoing care and any specialist equipment they need to live their lives.

Plus, you will have legal fees to pay. Most definitely yours and possibly theirs too.

The hidden costs of being sued

That is pretty bad, but there is also a hidden cost of being sued and having to pay workers ‘compensation.  It can do enormous damage to your reputation and that of your company. Potentially, you will lose sales.

As you can see, being sued by an employee for an injury at work is a serious matter. So, it makes sense to put safety high on the list of your priorities. You can find out more about how doing so will save you money by reading this.

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