Importance of Worker Compensation Insurance for Employer and Employee

Worker compensation insurance is another type of insurance policy, that protects the employer and his employees from the losses, which arise while working on a job.

Benefits for employer

1. It covers all the losses which are related to the workers compensation and their safety.
2. It benefits to the employer, when an employee is injured while doing his job, then the employer is responsible for the injuries. It provides compensation for medical expenses, hospital expenses and providing some portion of wage when they are disable.
3. Employer is responsible for the workers death while they are operating machines or while they are driving business vehicle.
4. To protect the employee from work place violence, terrorist attacks and natural disasters. While they are on the job.

Benefits for employee

1. It covers medical expenses while they are injured on the job.
2. It secures employee's wages, while they are disabled to do work due to injury.
3. It provides death benefits to the employee dependents, if employee dies while doing the job.

Worker compensation is very much important for smooth running of a business, as man power is the major asset of an organization.