Workers compensation insurance, also known as workers comp. is a type of insurance typically required by business owners who hire employees for various types of jobs. This insurance policy deals mainly with forms of compensation such as medical benefits and wage replacement, and they essentially come with an agreement that the worker will not sue the company for the tort of negligence.
The idea is that, as a worker might be injured on the job, they will be provided with immediate medical care – either at a discount or free of charge – and they will also be provided with wage compensation for the period in which they recover.
Depending on the jurisdiction involved and on the individual policies, workers comp insurance Colorado benefits offered to workers may differ. However, the basic principle of what workers compensation insurance means and offers remains the same.
Whether you own a large or small business, you will be required to offer some form of workers comp insurance to your employees. Disability insurance is often a must when workers are required to handle dangerous substances or heavy machinery that could cause them severe injuries if an accident happens. So make sure you consult your insurance company, before you even consider hiring employees for your newly founded business venture.