What it is
Workers’ compensation insurance provides coverage for employees in the event of injury, illness, or death. The benefits include medical costs, disability income, death benefits, and job retraining. In most states, it is required by law.
Three Reasons Why Your Nonprofit Needs this Coverage
- Required by law in most states: Most states have strict workers compensation laws that require any organization with employees to have Workers Comp coverage.
- Duty to take care of your employees: If your nonprofit has employees then you will want to make sure they are well take care of if they are injured or become ill while working for you.
- Large Claim Amounts: Workers comp claims can be quite large and direct payment of these claims would put an unnecessary burden on your budget.
This Could Happen to Your Nonprofit
A thrift store employee complained of pain in her shoulder. After consulting with her doctor it was determined that it was a repetitive motion injury caused by picking up and moving boxes at the thrift store. The claim continued over three year with over $130,000 in medical bills before a permanent and stationary determination was made and the employee was paid a settlement of $75,000
A contaminated needle stuck a nurse at a community clinic. She immediately sought medical attention and the medical bills were minimal. However, she was required to have ongoing testing over 6 months for communicable diseases.
A worker at a recycling center was driving to a pick up when he lost control of his vehicle and hit a power pole. He was taken to the emergency room with facial lacerations and a broken clavicle. The workers comp paid his medical bills as well as lost wages while he was recovering.