Why Workers Compensation Is Essential To Your Business

Workers compensation insurance, also called workman’s comp or work comp, provides benefits to employees for work related injuries or illnesses including medical care, loss of wages and rehabilitation services. Benefits are also provided to an employee’s family in the event of their work-related death. Work comp pays regardless of who was at fault in the accident.

Minnesota requires employers to secure workers compensation for employees regardless of the frequency of shifts or number of hours an employee works. There is no minimum amount of employees an employer must have before insurance is required.

In Minnesota, the penalty for not carrying workers compensation is up to $1,000 per employee per week that the employer is uninsured, regardless of if an injury occurred.

Misclassifying people as independent or subcontractors instead of employees is an expensive mistake made by employers, sometime intentionally, in an attempt to avoid tax and insurance costs.

Examples of Workers Compensation Claims May Include:

  • A dishwasher cuts themselves on a broken glass and needs stitches and cannot work.
  • An employee drops a car jack while carrying it and breaks their foot.
  • An employee slips on water near the kitchen requiring a hospital visit and time off of work.
  • A receptionist develops painful carpel tunnel syndrome and needs surgery.