Employers have a legal responsibility to their employees to provide a workplace safe. However, accidents happen even when every reasonable safety measure has been taken.
Business owners need workers' compensation insurance to protect themselves from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income. Workers' compensation insurance covers workers injured on the job, whether they’re hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.
Workers' compensation can provide payments to injured workers, without regard to who was at fault in the accident, lost wages, and for medical and rehabilitation services. It also provides death benefits to surviving spouses and dependents.
This coverage is statutory (required by law) and varies by state. Tennessee requires that any employer of 5 or more employees or any employer in the construction industry with 1 or more employees provide this coverage. Failure to provide workers compensation results in fines to the State of Tennessee as well as tremendous liability on your personal or business assets.