Hardwood Floors April/May 2025

FINANCE BUSINESS BEST PRACTICES

WHAT EVERY EMPLOYER NEEDS TO KNOW Workers’ Compensation Insurance:

Workers’ compensation is not just a good business practice, it is often a legal requirement. It is a state government-mandated program, but the laws vary by state. However, in most cases, businesses with employees must carry workers’ compensation insurance. Failure to comply can result in significant penalties, including fines, criminal charges, or being ordered to stop all work your company is performing. When an employee is injured on the job, he or she must report the injury to his or her employer as soon as possible. The employer then files a claim with their workers’ compensation insurance provider. The insurer evaluates the claim and, if approved, provides the necessary benefits to the employee. These benefits can include partial wage replacement, temporary and permanent disability, medical cost reimbursement, rehabilitation and occupational therapy, and compensation to beneficiaries if the worker passes away from their work-related injury or illness. Workers' compensation insurance, commonly referred to as "workers' comp," is a form of employer paid insurance designed to provide financial support to employees who suffer a work related injury or illness while reducing the business owner’s liability. If an employer carries workers’ compensation insurance, the employee, in most cases, can only bring a claim through the workers’ compensation system. An exception may be when the employer’s intentional actions resulted in the employee’s injury or illness.

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