Nobody wants to think about what would happen if they were injured in the workplace, but it’s an unavoidable risk. Every business owner has to pay for workers compensation coverage. But what is that really, and how does it work?
What Is Workers Compensation CoverAGE?
Workers compensation coverage is a form of insurance coverage employers must provide for their employees in case of injury or illness. Workers’ compensation benefits provide temporary income when a worker cannot work because of injuries sustained at work.
Workers’ compensation protects the employer from the risk of being sued by an employee who has been injured on the job. In exchange, the employer agrees to pay for medical expenses, disability payments, and lost wages if the employee becomes ill or injured and cannot work.
Workers compensation laws vary from state to state, but they usually include some type of medical treatment, disability payments, and lost-wage reimbursement. Some states workers compensation laws also allow employers to purchase additional coverage that covers death benefits and funeral expenses.
What Does Workers Compensation Policy Cover?
When an employee is hurt on the job, a workers compensation insurance company can help provide coverage for lost wages, medical expenses, and other costs. While this coverage is mandatory in most states, there are still some common myths about what exactly workers’ compensation covers. Here are some items a workers compensation insurance company can cover:
Lost Wages
Lost wages refer to money paid out for the time an employee misses from work due to an injury sustained on the job. This can include both partial and total disability. If you are partially disabled and unable to return to work at all during a calendar year, you may be entitled to 100 percent of your average weekly wage up until the maximum amount of weeks allowed under state law.
Medical Expenses
If you are injured on the job, your employer’s workers’ compensation policy will cover your medical expenses. Medical expenses include emergency room visits and treatment, doctor’s visits, physical therapy, chiropractic care, and other related medical services. In addition to medical bills, the cost of prescription drugs is also covered. However, this coverage does not apply to injuries sustained off the job or by non-employees.
Funeral Expenses
If you die from an injury sustained at work, your family may be eligible for funeral benefits under your workers’ compensation policy. These benefits can help cover the cost of burial or cremation services and other related expenses. Funeral benefit amounts vary from state to state and from one insurance company to the next, so it’s important to check with your provider before signing up for coverage.
Who Is Eligible for Workers Compensation CoverAGE?
Workers compensation coverage can be offered to full-time employees and those who work on a contract basis, provided they are considered employees under state law. In some states, employers may purchase workers compensation coverage for all of their employees, no matter how many hours they work per week or month. To qualify for workers compensation coverage, you must meet the following criteria:
- You must have been injured while performing duties related to your employment.
- The injury occurred on or during work hours.
- The injury was not intentionally self-inflicted.
- The injury resulted in medical expenses or disability due to illness or injury incurred during employment.
Who Pays for Workers Compensation Coverage?
The employer is responsible for providing workers compensation coverage. This can be done through a third-party insurer or self-insurance. Workers compensation premiums are calculated based on various factors, including the type of industry, number of employees, and past claims history. In some cases, employers may be exempt from carrying workers compensation if they have fewer than five full-time employees (or equivalent part-time) or if they’re not engaged in any manufacturing or processing business.
Workers compensation is insurance that all employers must provide to employees who get injured or become ill on the job. These benefits are typically paid by the company’s insurance company, but all workers compensation plans in your state must meet specific state requirements. Check with your state’s department of labor and industry for compliance rules and company options in your state. If you want to get your employee’s workers compensation, contact National Risk Experts today.
