Workers Compensation Insurance
Workers Compensation Insurance
Worker’s Compensation Insurance is insurance that covers employees for injuries received on-the-job or in the course of employment. Unlike many other types of business insurance, Worker’s Compensation Insurance coverage is generally a required type of insurance coverage. While there are some exceptions, most states require most businesses with employees to buy insurance policies to cover their obligations to pay worker’s compensation in the event of an employee being injured or becoming ill on the job. The coverage included in a Worker’s Compensation policy generally covers medical expenses, lost wages, vocational rehabilitation, and, in the event that an employee dies as a result of the injury or illness, survivor benefits for their insurance designee.
A business that fails to carry Worker’s Compensation Insurance faces dual exposure: its assets are at risk in the event that an injured employee or a survivor brings a lawsuit against it for a workplace injury and, in most states, it can face fines and other penalties.
Some states and territories do not permit businesses to get private coverage for Worker’s Compensation Insurance, but instead require employers to get their coverage through state operated funds or exchanges. These states and territories are North Dakota, Ohio, Puerto Rico, the U.S. Virgin Islands, Washington, West Virginia, and Wyoming.
Many people have questions about workers’ compensation insurance. Workers’ compensation insurance is designed to protect employers and employees. It provides a way for workers to recover if they are hurt or injured on the job, while protecting employers from liability lawsuits for injuries.
What is covered by workers’ compensation?
Workers’ compensation covers work-related accidents or illnesses. It can cover medical expenses, funeral expenses, lost wages, and the costs of continuing care.
Not all injuries in the workplace are considered work-related. Workers’ compensation does not cover fights started by the employee, injuries due to intoxication, intentional injuries, and emotional injuries.
What do employees pay for workers’ compensation coverage?
Nothing. Employers are responsible for workers’ compensation coverage. It is required in 48 states but is voluntary in Texas and New Jersey.
How much does workers’ compensation coverage cost?
Workers’ compensation costs are based on the risk of injury in the workplace. Insurers look at your industry, the history of claims in your workplace, whether there are specific risks, and the size of your business. The best way to find out about compensation costs is to talk to an insurance agent.
How does an employee collect workers’ compensation?
The first step to collecting workers’ compensation is reporting an on-the-job injury. If it is a job-related illness or injury that worsens overtime, then the employee should report it when they find out it is job related. Then, the employee needs to notify the employer that they are filing a workers’ compensation claim and follow the steps outlined by the employer.
How does an employer file a workers’ compensation claim with the insurer?
Contact the insurer for specific claims information. However, employers need to be prepared to demonstrate that the injured person is an employee, that the injury or illness was work-related, and that it occurred in the workplace.
Are all workers covered by workers’ compensation coverage?
No. Generally, workers’ compensation does not cover contractors, volunteers, or domestic workers in private homes. Some states exclude workers in specific fields. Check with your employer to determine if you are covered by workers’ compensation coverage. If you are a business, you should check with your insurance agent to see if you need to have workers’ compensation coverage.
What information does an insurer need to give you a workers’ compensation insurance coverage quote?
Insurers should tailor quotes to your specific company. You need to be able to provide the number of employees at your business, the type of work they engage in, how many employees need coverage, and the size of your payroll.