The Importance of Workers’ Compensation Insurance on Farms

Farms form a core pillar of the agricultural industry, providing essential foods to households, families and businesses across the country. However, while these businesses may be rewarding, they also include significant risks and exposures, including the potential for employee injuries and illnesses. Workers’ compensation insurance is an essential loss control measure that all farms must prioritize.

What Is Workers’ Compensation Insurance?

Workers’ compensation insurance should be a part of every farm’s coverage portfolio. These policies constitute a contract between you and your insurance company that can ensure your employees receive the financial assistance they need following work-related injuries or illnesses. By securing a policy and keeping up with your premiums, you retain the right to file a claim following incidents that may make all the difference in affected employees’ recoveries and your farm resuming operations.

Why Do Farms Need Workers’ Compensation Insurance?

Workers’ compensation insurance is legally required for most farms, and failing to comply with these mandates could lead to fines and other penalties. Beyond formal obligations, the significant dangers that may be present on farms could have devastating consequences for your business’s financial stability. After all, farm operations may inherently include significant perils and hazards, such as working with heavy machinery, large animals, motor vehicles, sharp tools and hazardous materials. Even the most experienced and responsible farms may eventually experience serious accidents, and workers’ compensation insurance can make all the difference.

What Does Workers’ Compensation Insurance Cover?

Like many types of insurance, the details of workers’ compensation coverage may vary, but policies can typically provide funds and resources to address the following:

• Medical bills—If an employee’s work-related injuries or illnesses require them to seek medical attention, your insurance can provide financial assistance.
• Lost wages—If on-the-job ailments prevent an employee from fulfilling their usual duties, this coverage can help them maintain their income.
• Disability benefits—Your insurance may also help pay for ongoing benefits should an employee develop a temporary or permanent disability.
• Death benefits—If a workplace incident proves fatal, your coverage may provide compensation to family members.
• Vocational rehabilitation—Should an employee be unable to return to their previous position due to work-related health problems, workers’ compensation insurance may help pay for training to ensure they can pursue different opportunities.
• Employer legal costs—Workers’ compensation insurance may also help your farm pay for attorney fees, settlements and court-ordered judgments if work-related injuries or illnesses lead to lawsuits.

Get the Right Coverage

At Don Ramatici Insurance, we have a track record dating back over 70 years and will draw on this extensive experience to help your farm assess and address its insurance needs. Contact us today to learn more or to get a workers’ compensation insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.