Workers Compensation: An Important Part of Corporate Risk Management

Dec. 31, 2013 - PRLog -- As companies look for ways to lower their risk of liability lawsuits, workers’ compensation tops the list of risk management solutions.

Workers compensation is an important policy for any company that hires employees. With a workers compensation policy, an injured employee will receive medical compensation, as well as a portion of lost wages. This policy provides valuable protection for employees, as well as employers. Since the injured employee will not have to take legal recourse against an employer to receive compensation, the employer with workers compensation faces a lowered risk of lawsuit.

“While many companies think that workers’ comp is a policy that is strictly for the benefit of employees, but actually, a worker’s compensation policy has valuable benefits for companies as well,” states Texas Energy Insurance, a Houston-based company that provides insurance to energy companies throughout the state of Texas.

Many companies are looking for ways to save money, and blindly are assuming that cutting costs with workers compensation is the way to go.

“With the economy the way it is, employers are often looking for ways to cut costs and often consider skipping having worker’s compensation insurance as it is often quite expensive,” says Candy Messer of todaysinovativewoman.com. “This is not only unwise, it is illegal in most states.”

While Texas doesn’t require companies to have workers compensation, some companies are taking advantage of this and failing to protect themselves –and their employees- with a policy.

"While for many companies, workers’ compensation isn’t required under Texas law, this insurance is a valuable -and increasingly necessary- liability policy that can help to provide valuable protection for a company," says Texas Energy Insurance.

For companies who hire employees, taking out a policy can protect employers from costly injury related lawsuits that can sometimes reach into the tens of thousands or higher.

No business is exempt from problems, or injuries. Even the safest companies still have accidents. Energy companies are especially at-risk for employee work-related injuries, and lawsuits.

It’s not just financial devastation that these lawsuits cause, these lawsuits are time-consuming and complex. An injury related lawsuit can cause a huge drain on company resources.

“Since the reimbursement process of paying our injury damages is more complex than just simply paying claims, the reimbursement of compensation to an injured employee is complicated and governed by statute,” Texas energy insurance.com adds. “Many companies do not have experience –or funds- that are needed for claims analysis, management, and pay-out that employees need when an injury occurs.”

Texas Energy Insurance provides insurance for energy companies throughout the state of Texas. For more information on workers’ compensation insurance, visit their website: www.texasenergyinsurance.com/articles

http://todaysinnovativewoman.com/2013/03/the-importance-of-having-workers-compensation-insurance/