Electrical contractors generally face numerous workplace hazards. Slips and fall risks are often present because electricians frequently have to navigate rough ground and work at height. Electricians also face ergonomic hazards like MSDs (musculoskeletal disorders) resulting from repetitive motions and poor handling and lifting practices. In 2019 alone, there were 7,400 cases of electrical work-related illness and injury requiring days off from work and 68 fatal injuries, according to the U.S. Bureau of Labor Statistics. Due to the dangerous nature of electrical work, workers’ compensation for electrical contractors is essential. This article explains the reasons why workers’ compensation insurance is important for electrical contractors.
What Is Workers’ Compensation Insurance?
Workers’ compensation or workers’ comp insurance compensates workers if they get a work-related injury or illness. Workers’ comp coverages include:
- Lost wages – If an employee is forced to miss work due to a work-related illness or injury, workers’ compensation insurance pays their wages as they recover.
- Medical expenses – It covers the medical expenses of workers who need medical care due to work-related illness or injury.
- First aid treatments – It covers costs for all medical treatment, including treatment for minor injuries.
- Permanent disability – If a severe injury renders an employee permanently incapable of working in their industry, workers’ comp coverage will provide the employee with long-term financial support.
- Vocational rehabilitation – If an employee’s work-related injury or illness requires rehabilitation, your workers’ comp policy will cover the resulting expenses.
- Death Benefits – If an employee passes away due to a work-related illness or injury, workers’ comp will provide death benefits and cover associated costs such as funeral expenses.
How Does Workers’ Compensation Protect Your Business?
If your business doesn’t have a workers’ compensation policy, you’re exposed to financial and legal liability if an employee falls ill or is injured on the job. You will not only be obliged to take personal responsibility for the employee’s medical care costs, but the employee can also sue you for damages in case you don’t have workers’ comp.
Is Workers’ Compensation Insurance Legally Required?
Almost all states across the U.S. require employers to carry workers’ compensation insurance. This means that if you have workers, you’re legally mandated to carry workers’ compensation coverage. However, even if workers’ comp isn’t legally mandated, carrying this policy will make your business more attractive to prospective employees. Moreover, when workers agree to be covered by workers’ compensation insurance, they relinquish their right to sue your business for negligence. This ensures that your employees and your business are equally protected. Your business is protected from legal liability and your employees’ medical expenses are covered in case of work-related injuries and illnesses.
What Is Not Covered by Workers’ Compensation Insurance?
- An injury resulting from horseplay – Horseplay generally refers to acts that are not part of the employees’ responsibilities and not part of the business operations, such as fights.
- Injuries deliberately caused by a worker.
- Injuries to an intoxicated worker provided the intoxication leads to injuries.
- Injuries that occur as an employee commutes to the workplace.
Workers’ compensation insurance protects your business from being sued by workers due to a workplace illness or injury. It also provides financial compensation to workers in the event of work-related illnesses or injuries. Therefore, this policy is essential for electrical contractors as well as any other business that has employees. For a workers’ compensation insurance policy that will adequately protect your business and your workers, reach out to our experts at Artisan Insurance Solutions.