Workers' comp is a type of business insurance coverage that protects both business owners and employees. It pays the costs of medical treatment for victims of workplace injuries and illnesses. Because many people are unfamiliar with the particulars of the subject, below are answers to some of the most frequently asked questions about workers' comp insurance.

The Workers' Comp FAQ

What does workers’ compensation insurance cover?

To recover workers’ compensation benefits, workers must be performing duties in the course of their job as an employee of a covered business, and they must suffer an illness or injury arising out of those duties. The insurance pays for medical care for that illness or injury, and it may also pay for any lost wages resulting from not being able to perform typical workplace activities.

How does workers' comp benefit business owners?

To take advantage of free medical care for their injuries, employees must agree not to seek additional recompense in a court of law. The insurance minimizes legal fees and liability amounts for employers. It also covers any workplace injuries suffered by the owner, as well.

Is workers' comp insurance mandatory in North Carolina?

North Carolina law requires businesses with three or more employees to purchase workers' compensation coverage. For the purposes of this law, qualifying employees may be full- or part-time, permanent or temporary, or even under 18. Failure to comply with the law can lead to fines or even jail time.

Must an injury occur on company premises to be covered?

No, as long as the injury or illness occurred while performing job-related duties, the location of the event does not matter. The injury could take place while the employee is running a workplace errand, traveling on business, working at a client's site, or even attending a mandatory business dinner.

To design a workers' comp insurance policy with the help of an experienced professional, contact Mountcastle Insurance. They maintain offices in Winston-Salem and Lexington, NC, and have been serving customers throughout the Piedmont Triad area for nearly 130 years. They specialize in auto, home, health, and business insurance and offer terrific service and affordable rates. Visit their website to view location details or call (336) 777-8500 to request a quote.