Workers’ Compensation Insurance – what you should know


Workers’ compensation insurance is one important thing to be aware of as part of your business.

Hi everyone my name is Timileyin and in this post I will be talking to you about what you need to know about workers compensation insurance.

Let’s start with explaining what workers’ compensation means, Workers’ compensation is an insurance program that helps workers that are incapacitated.

They help workers who are sick while on their jobs to make up for their medicals among other things.

Workers’ compensation insurance helps with a couple of things which includes injury, permanent damages on the body, rehabilitation, death, liability insurance and a couple more.

This insurance package will ensure that irrespective of who is at fault, the person and all others still get insured.

Below are some of the Facts and myths to be aware of about workers’ compensation insurance


1. Once the compensation insurance has been paid, the employer has no other responsibilities

As an employer, you need to be close with your employees by maintaining a good relationship with them because doing that will help you tell when your employee will be able to come back to work and also reduce the probability of fraud.

A program that can reduce the number of days lost to injury or sickness can be brought in and this consequently increases productivity.

2. To use the workers’ compensation insurance, you need to be a big business

Every state has it’s own laws but most of the states have this common law in relation to issuing compensation insurance and this law is about a business having at least an employee.

Most of the times, it is recommended to get the workers’ compensation insurance irrespective of how large your business is even if your current state doesn’t require it.

3. Fraud when giving workers’ compensation

It’s mostly believed that claims of workers needing compensation insurance are always false but the truth is that most of the time those claims are always genuine.

A research done towards that claim showed that 1 to 2% of those claims are false but a very high percentage of it happens to be true.

Irrespective of that it is important to always stay frost so as to detect any false claim and take necessary action.

It also obvious that fraud affects the healthhealth of a business or company negatively, therefore it is important to double check any request being made.

4. Filling the 1099 forms is a way to escape paying workers’ compensation

Most businesses especially the small scale ones believe that one their workers sign the 1099 forms they are not covered by the compensation policy.

The truth is that to be classified a private contractor for a company, you need to fulfil certain criteria and if it is discovered that such company tags their employees as private contractors so as to avoid workers’ compensation, they can be fined.


1. A compensation can be paid to a worker who had an injury that was partially his fault


As a worker who has an injury while on duty, you can assured that you will get your medicals sorted out via your insurance even if the injury was his fault.

Although if you got injured under the influence of drugs or alcohol, there is a high chance that the insurance policy won’t cover you.


2. A worker can still benefit from the compensation even if he wasn’t at the work location.

Irrespective of where you are, it is said that you as a worker can still get your compensation on any injury had so far you are still performing your duties but not necessarily at your work location.

Examples of people in this category include remote workers, business workers having a business meeting at a different location other than the office.

This policy does not cover workers on vacation even though they may be on the company’s property.

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Komolafe Timileyin is a passionate entrepreneur that loves to solve entrepreneurial issues. He is also a blogger and an upcoming Engineer.

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