Workers’ comp insurance is required for any business owner hiring employees. Whether employees get injured or fall ill on the job, workers’ comp is a no-fault system that ensures they’re paid out for any immediate and long-term complications, helping them financially support themselves while also preventing them from being able to sue you for said injuries.
But while workers’ comp is cited as being a no-fault system, is this always the case? As it turns out, there are circumstances in which an employee may be denied or an employer may be faced with a lawsuit. We take a closer look at these circumstances so that you can know what to expect when it comes to your workers’ comp insurance. If you’re planning on starting a business or expanding and need workers’ comp, get in touch with us at U.P. Insurance Agency Inc., serving Negaunee, MI.
Is Workers’ Comp No-Fault? Mostly, But There Are Exceptions
For the most part, workers’ comp is no-fault. However, there are always exceptions to the rule. Here’s a breakdown of when no-fault may not apply.
- For Employees: Employees can engage in actions that lead to workers’ comp denial. Some of these actions include being drunk or otherwise intoxicated on the job, engaging in serious misconduct or illegal behavior that unnecessarily puts them in harm’s way, or intentionally harming themselves in order to receive benefits.
- For Employers: Employers benefit from workers’ comp by ensuring that employees aren’t able to sue. However, if they intentionally caused injuries or engaged in misconduct that can open them up to a lawsuit, then workers’ comp will no longer protect them.
Cover Your Company and Your Employees With Workers’ Comp Insurance
Make sure you have what your business needs with our help at U.P. Insurance Agency Inc., serving Negaunee, MI. Give us a call today.
