a wrist injury

Being a business owner often entails leading a team that ends up growing and evolving with time. This workforce is an asset to your business—and success. Not only is it good practice to ensure that you are maintaining a suitable and safe work environment, but it is mandatory to carry workers’ compensation insurance that adequately protects your team and business. Take a closer look at the many benefits of securing workers’ compensation insurance for your business.


What is workers’ compensation insurance?

Workers’ compensation is mandatory coverage that is employer-financed, no-fault insurance. It compensates employees who suffer a work-related injury for medical treatment and lost wages. The goals of workers’ compensation are to first create safer workplaces, as well as promptly treat and compensate injured employees, and reduce litigation costs. When an employee receives help from a workers’ compensation claim, they forfeit their right to sue your business for negligence.


In Pennsylvania, any employer with at least one employee who could be injured or develop a work-related disease is required to provide workers’ compensation insurance for its employees. There are very few exceptions, such as federal workers, railroad workers, and domestic workers.


What are the main benefits of workers’ compensation for employers?


  • Regulatory compliance

If an employee suffers a work-related injury that is deemed compensable and the employer does not have workers’ compensation insurance, the employer will then be required to reimburse the state for the direct costs of the injury as well as interest, penalties, attorney fees, and more. An uninsured employer may also face the risk of civil litigation by the injured employee and the risk of criminal charges by the state. In short, it opens up the business owner to many financial hurdles.


  • Prevents lawsuits

The Pennsylvania Workers’ Compensation Act does not allow employees to bring lawsuits against employers for work-place injuries if the employer provides the necessary workers’ compensation benefits. Business owners will know that any form of litigation can have negative effects on a business. It can drain company finances, time, and energy. Litigation can also impact the relationship between the business owner and the employees, customers, vendors, and investors. A lawsuit can tarnish your company’s reputation and has been known to lower a company’s value and sales, and even force companies out of business. Workers’ compensation is a significant safety net when it comes to lawsuits.


  • Financial benefits

By complying with the workers’ compensation insurance requirements, a business avoids having to pay fines and reimbursement when an accident does happen. Workers’ compensation insurance also protects employers from direct lawsuits by injured employees, eliminating the risk of high fees and potential settlement.


  • Protects employees

Your business’s most vital assetare the employees. Workplace injuries have far-reaching effects on finances, lost productivity, retraining costs, and more. A safer work environment with fewer injuries is better for everyoneboth employee and employer. With fewer injuries comes lower workers’ compensation costs. That saving has become a great incentive for employers across the nation to create safer workplaces for their employees. Safety training and safety programs can help employers save on workers’ comp costs.


Workers’ compensation has many benefits for your business. Interested in finding the right business insurance for your company? Then turn to the experts at Sausman Insurance in Mifflintown and Millersburg Pennsylvania.  Our team is ready to assist you with all your insurance needs. Contact us to get started today.