Workers’ compensation insurance covers an employee’s medical costs and lost wages for injuries and illnesses directly related to their work. While workers’ compensation laws vary by state, nearly every U.S. state, including Illinois, requires businesses to have a workers’ compensation policy in place as soon as they hire their first employee.
Workers’ compensation policies cover employees’ medical expenses for illnesses or injuries related to their job. Medical insurance policies typically will not cover care for work-related injuries and illnesses, so without worker’s compensation insurance, the employer would be on the hook for those costs, which are a massive financial burden for all but the largest of companies.
This crucial insurance also at covers a portion of lost wages for an injured or ill employee, so they don’t completely lose their income while they’re out for treatment. A solid workers’ compensation policy handled by an experienced broker and insurance carrier helps maintain employee goodwill through work-related injuries and illnesses, and prompt care can also help the employee return to work sooner.
Workers’ compensation also offers protection in the event an injured or ill employee files a lawsuit against their employer. However, an employee who promptly receives the coverage they need is less likely to file a lawsuit in the first place, so make sure to find a comprehensive policy and a broker you trust to help you and your employees get the protection and care you need.
Most states also have costly fines for noncompliant employers. Here in Illinois, businesses without workers’ compensation insurance can face a minimum fine of $10,000.
Proper workers’ compensation insurance coverage is a necessary investment that protects your business and employees. Contact our team of commercial lines agents here at Kamm Insurance Group at to make sure your business gets the coverage you need.