What is Workers’ Compensation Insurance?

Workers' Compensation is a vital type of business insurance, particularly designed to cover employee injuries that occur at the workplace. I provides benefits irrespective of who was at fault. This approach ensures employees injured on the job receive needed help, whether for minor accidents or more serious incidents.

Each state has its own rules defining who's covered, what benefits they get, and the required coverage for businesses. The National Council on Compensation Insurance (NCCI) sets the standard for these policies in most states.

For example, both an auto repair shop and an independent doctor’s office need Workers' Compensation insurance. This coverage kicks in if an employee gets hurt while doing their job, like a cut from an instrument or a back injury from lifting a heavy object. The benefits provided align with the rules set by the state.

In a nutshell, while general liability insurance is crucial for all businesses, Workers' Compensation specifically protects against the risk of employee injuries.