Workers’ compensation insurance is an important investment for every company. It covers injuries an employee suffers during the “course and scope” of employment. What does that mean? Determining when an injury qualifies for coverage can seem difficult. Most often, your agent will offer guidance about coverage, but there are a few things you need to consider.
When Are Injuries Covered?
Workers’ compensation covers worker injuries in some situations. Specifically, coverage will most likely apply when an employee is engaging in work-related tasks on the job site. However, there are situations where this isn’t as clearly defined.
For example, the employee may be working outside on the company’s lot when the injury occurs. What if the employee has to leave the job site to complete the work? Does that fall under coverage?
The term “course and scope” helps us to see when workers’ compensation insurance applies. That means the employee suffers an injury at the workplace or while he or she is engaging in work-related activities if not located at the workplace.
Here is an example of a common situation. Let’s say an accident occurs while an employee is driving from one workplace to another location for meetings. The employee gets hurt in the wreck. In this situation, the employee’s injuries are the direct result of the work he or she does for the company. They were also likely working, because they were going to a meeting. The worker’s injuries fall under the area of workers’ compensation.
By comparison, the worker driving to and from work does not have this coverage. He or she is not operating for the business, but just working to get there. If an employee is in an accident on the way to or from work, workers’ compensation insurance typically does not apply.
Tricky Situation? Your Agent Can Help
There are a variety of situations that are not clear cut and can be hard to understand. If you have a situation where you are unsure if your policy covers the incident, contact your insurance company. A key part of their service to you is helping you to learn about your liability in situations like this.
It is always the case that a business owner needs to ensure the workplace is safe for the worker. However, having workers’ compensation insurance helps minimize the financial loss your company could face should an incident occur. It’s not possible to avoid all accidents – some will happen over time or suddenly. That’s why proper coverage helps to reduce your costs in these situations. Contact us today for more information on workers compensation insurance.