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Ways to Save Before Your Employee Gets Hurt on the Job

Workplace injuries can be devastating on a business if they are not covered properly with insurance protection or are solvent enough to absorb the associated costs. Employers are almost always responsible for injuries suffered on the job, especially when they are directly related to job duties. There are some measures that any business can take beforehand to both help the injured employee and reduce the potential financial damage to the employer.

Ways to Save Before Your Employee Gets Hurt on the Job

All states are required by federal law to implement some type of employee work insurance, but some states exclude private individuals who contract others or contract themselves solely. Some type of insurance should be considered for both the established company or a new business start up.

Workers Compensation Insurance

Workers compensation, better known as workers comp, is a required insurance protection for most employers to carry on their employees. This type of insurance is designed specifically to reduce the punitive damages that can be assigned to the employer in egregious injury situations. Depending on the danger involved in the industry, employers can still be sued separately in certain cases, such as when safety regulations have not been followed.

It is important for any business to comply with all OSHA requirements and educate their employees on each application. The program allows the injured employee to receive monetary benefits during the duration of the injury, but is much more cost effective than failing to provide the insurance. When companies like Liberty Mutual spend time denying legitimate claims the first time around, the claim typically becomes more of a burden to the victim and costly for all parties involved.

Personal Business Insurance

It is possible to purchase business insurance that covers injuries which will ultimately be the responsibility of the employer. This protection is usually structured differently from workers compensation, and the employer vulnerability to punitive damages is greater. Any stipulations or riders for the policy should be discussed before purchasing the coverage.

Always make sure that the language is included in the policy as documentation, and be as specific as possible before signing. This is an attractive protection for a private contractor who is not required to carry typical workers compensation on themselves, and it serves as an excellent additional form of insurance coverage.

Contract Workers

Many employers hire individuals through service contracts. The construction industry is an excellent example of this business practice. The actual employer is the company or person that is required to provide compensation insurance by the very definition of the law. Contracts can be structured with language that spells out directly who is responsible for certain situations. Making an accurate assessment of the business model used in procuring employment is always an important business decision and feasibility study.

Workers compensation insurance is available to all companies in all states, and is usually the most efficient legal option when considering both asset and employee protection. Choosing a different option should also include close scrutiny of the amount of coverage needed, as it is very important not to underestimate what the expense of a workplace injury may be.

Growing businesses may also need to change their particular insurance protection plans as the business grows if more employees are being hired. All laws concerning employee health are designed to minimize problems for both parties, as well as reduce business expenses overall. Legal compliance in all areas is always the best decision, along with some added coverage for certain situations.

Giovanna O’Neal is a wife, mother, and writer who researched issues related to Liberty Mutual workers compensation claims being denied at They have handled numerous cases against Liberty Mutual and other insurance companies on behalf of injured workers.

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