Companies wouldn’t exist without their employees. It is thanks to their hard work that organizations earn profits. But companies cannot have employees if they don’t have workers’ compensation insurance. Workers’ compensation is a form of insurance in which employees are provided medical benefits and wage replacement in case they suffer any damage while working.

 

Workers’ compensation laws make sure that any employee that is hurt or disabled on the job receives determined monetary amounts, avoiding any litigation. In case the employee is killed because of an accident or disease related to their job, the workers’ compensation also provides benefits for their dependents. The main reason for this insurance is to protect any employee that can be injured or disabled because of a work-related accident, so they don’t have to face the medical costs of the accident, or even the loss of wage during the period of time they may be disabled.

But is it really necessary to business owners to offer workers’ compensation and having that extra cost? Business owners shouldn’t see workers’ compensation as an extra cost. Workers’ compensation is mandatory in Colorado, with limited exceptions, and if we don’t provide it to our employees, our employees have the right to sue the company. If that happens, companies usually end up paying much more than what they would have paid by providing coverage. So, business owners should understand workers’ compensation as a protective cost-effective tool that leads to compliance and better employee management.