Pays for medical costs related to an employee’s work-related injury or illness, including hospital visits, surgeries, medications, physical therapy, and medical equipment. Why It’s Needed: Workplace injuries can lead to hefty medical bills, and without this coverage, you might be personally liable or face lawsuits from employees. It ensures your workers get prompt care, which helps them recover faster and return to work. Example: An employee in your warehouse sprains their back lifting a heavy box and needs X-rays, physical therapy, and pain medication. Medical expenses coverage pays for all their treatment, keeping costs off your books and helping them heal.

Replaces a portion of an employee’s wages (typically 60-75% of their average weekly earnings, subject to state caps) if they’re unable to work due to a work-related injury or illness. This includes temporary total disability (full time off), temporary partial disability (reduced hours), or permanent disability benefits. Why It’s Needed: Employees rely on their income, and covering lost wages prevents financial hardship for them while protecting you from potential lawsuits for lost earnings. It also shows your team you’ve got their back, boosting morale. Example: A cook in your restaurant burns their hand severely and can’t work for six weeks. Lost wages coverage pays a portion of their salary during recovery, ensuring they can cover bills without suing you.

Pays for vocational rehabilitation, physical therapy, or retraining programs to help injured employees return to work or transition to a new role if they can’t perform their previous duties. Why It’s Needed: Serious injuries may require long-term support to get employees back to work, and this coverage reduces your liability while helping workers regain their livelihoods. It’s especially important in industries with physical demands. Example: A construction worker on your team injures their knee and can’t climb ladders anymore. Rehabilitation coverage funds physical therapy and retraining for a less physical role, like site supervision, keeping them employed

Provides financial support to the dependents of an employee who dies from a work-related injury or illness, typically including funeral expenses and ongoing payments (like a percentage of wages) to the family. Why It’s Needed: Tragic workplace fatalities can lead to significant financial and legal burdens for your business, and this coverage supports the employee’s family while shielding you from direct lawsuits. Example: A delivery driver for your company is killed in a work-related car accident. Death benefits cover funeral costs and provide monthly payments to their spouse and children, reducing your exposure to a wrongful death claim.

Protects your business against lawsuits from employees or their families claiming negligence or unsafe conditions caused their injury or illness, covering legal defense costs, settlements, or judgments. Why It’s Needed: While workers’ comp generally prevents employees from suing you for workplace injuries, some may still file claims alleging negligence (e.g., faulty equipment). This coverage acts as a backup to handle those legal costs. Example: An employee injured by a malfunctioning machine in your factory claims you failed to maintain it properly and sues. Employer’s liability coverage pays for your legal defense and any settlement.