Workers compensation is a mandatory insurance in most states. It provides benefits to employees if they get injured while at work or contract an illness. The insurance provides for lost wage benefits and medical care to employees who are injured on the job. Worker’s compensation in all states covers all the necessary medical expenses which include physician fee, nursing care and medication. In the event the injured person dies, the policy covers funeral expenses.
What is a work-related injury?
A physical condition caused, accelerated, precipitated, or aggravated by the work or work environment.
The injury must be accidental, meaning it was unforeseen or unintended.
The insurance protects the business and the owner from claims arising from employee work-related injuries. The policy provides the following benefits to the employee.
Medical treatment with Workers Compensation
It will cover doctor’s appointments, medicine, therapy, and recovery equipment that the employee might require during recovery.
Disability benefits with Workers Compensation
A work-related injury can cause disability to an employee, which can be
Temporary total disability– Due to the injury, the employee cannot work for a short while but will resume duties.
Temporary partial disability- Although the employee is injured, they can still perform duties at reduced capacity.
Permanent total disability- The injury causes permanent disability to the employee, and they will not resume duties.
Permanent partial disability- Despite the injury, the worker can resume duties but not in the same capacity.
In such a caseworkers compensation provides the employee disability benefits for the rest of their life.
In case of time off, it provides for lost wages until the employee can resume official duty.
Workers’ compensation covers ongoing treatment. It can be rehabilitation to learn a new motor skill or regain previous skills. Workers Compensation can offer financial support for up to two years, during which time the employee may receive economic benefits through lost wages.
In an unfortunate accident where the employee loses their life due to a work-related injury or illness, workers’ compensation insurance will provide financial benefit to the family or beneficiary.
To be eligible for worker’s compensation, you have to
Be an employee. You have sustained a work-related injury, and as a result of the accident, you are disabled from earning your weekly wage.
As an employee, it means you work for somebody, and you are insured- your employer has a workers’ compensation insurance policy in place.
Due to the injury, you cannot earn your regular wages or what you were making before.
Workers’ comp does not extend to independent contractors.
Cost of Workers Compensation
The standard cost of a worker compensation insurance policy is based on the location, nature of business, experience, and payroll.
Worker’s Compensation Vs. General liability
The similarity between the two policies is that both cover work-related bodily injuries. However, worker’s compensation is a requirement by law for any business that has employed staff, while general liability is not compulsory.
The difference is that general liability does not cover the employee but third party’s injuries, for example, your customers or clients.
It is advisable to have both policies to cover yourself as the business owner and your business. It ensures the costs are covered, without which financial loss will be massive as you will pay out of pocket.
Before purchasing a worker’s compensation, it is worth noting to seek an experienced insurance agent’s advice. It is because different states have different regulations.