One workplace injury can cost more than you think.

If you’re running a small business, you already have a lot to manage: Hiring, payroll, customer service, scheduling, and taxes. Insurance adds a whole extra layer of complexity. And, one of the most misunderstood policies is workers’ compensation. You’ve probably heard you need it, but what does workman’s comp actually cover?

Workers’ compensation is a type of employee injury insurance. It’s designed to protect both your employees and your business when someone gets hurt or becomes ill because of their job.

For example, if someone falls off a ladder, cuts themselves with a tool, strains their back lifting something heavy, or develops a repetitive stress injury, workers’ comp is the policy that helps cover the consequences.

Without it, your business could be responsible for medical bills, lost wages, or even a lawsuit.

In most states, workers’ comp includes five core benefits:

1. Medical CostsThis covers any treatment the employee needs for a work-related injury or illness. Doctor visits, hospital stays, surgery, medications, and physical therapy are all included.

2. Lost WagesIf your employee can’t work while they recover, workers’ comp provides partial income replacement. The amount varies by state but typically covers around two-thirds of their average wages.

3. Ongoing CareSome injuries take weeks or months to heal. Workers’ comp helps cover follow-up care, rehabilitation, and anything needed to support long-term recovery.

4. Disability BenefitsWhen an injury results in long-term or permanent limitations, disability benefits are available. These may be partial or full, depending on the severity of the injury.

5. Death BenefitsIn the rare but heartbreaking event that a workplace injury results in death, the policy provides benefits to the employee’s dependents. This includes help with funeral expenses and lost income.

Workers’ comp doesn’t apply if the injury happens off the job or is caused by intoxication, horseplay, or intentional harm. It also doesn’t cover claims related to harassment or discrimination. Those situations fall under separate types of insurance, such as employment practices liability.

In most states, the answer is yes. Even if you only have one employee, you may still be legally required to carry workers’ comp. Certain industries, like construction or manufacturing, carry more risk. But injuries can happen anywhere, even in a quiet office or retail setting.

The good news is that coverage is usually more affordable than most business owners expect. It can also shield you from costly legal action, since employees who receive workers’ comp benefits typically waive the right to sue.

At the Wallace Insurance Agency, we help small businesses get the coverage they need and understand exactly what they’re paying for. Call today or click here to schedule a short consultation. One quick conversation could save you a lot of trouble later.