Industrial Insurance

What Does Industrial Insurance Mean?

Industrial insurance is a policy designed to cover employees in the event of a work-related injury that prevents them from working and earning income. Although available in all fifty U.S. states, the specific features and benefits can vary from state to state.

In the United States, this type of coverage is more commonly known as workers’ compensation insurance.

Insuranceopedia Explains Industrial Insurance

Industrial insurance is purchased by employers or business owners to provide coverage for their employees. It typically covers work-related injuries or on-the-job accidents, but does not cover injuries that occur outside the workplace. Most plans pay for medical care plus a portion of the employee’s regular wages during recovery, which is why a workers’ comp policy is one of the first things most companies buy after they hire their first employee.

The specifics of industrial insurance vary by state, with differences in coverage and eligibility requirements. In some states, the number of employees determines whether this insurance is required, while in others, the nature of the work—particularly if it involves physical hazards—may necessitate coverage. Owners often shop for it alongside their other business insurance policies, since most companies need separate coverage for things like property damage and customer lawsuits.