Workers Compensation

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Workers’ compensation & Its basic functioning

Worker's Compensation and Employers Liability insurance provides coverage for employees injured while performing their job. Employee illness may be compensable if the illness is directly related or exacerbated by conditions in the workplace. The employer is liable to pay for the employee’s medical care and a percentage of lost wages, regardless of who is at fault for injury or illness. 

The rules for insurance are established by the statutes in each state therefor coverage can vary from state to state.  Each state's laws govern the following:

  • Amount of loss wage benefits owed to the entitled employee (and minimum and maximum loss wage amounts)
  • If exemptions are permitted for owners or officers
  • Level and cost of medical care to be delivered
  • When a workers compensationpolicy is statutorily required
  • If workers compensation insurance is provided by a state-run program or private insurers
  • How disputes are handled
  • If credits are given for workplace drug free or safety programs
  • If deductibles and coinsurance are permitted on policies

Who needs it?

A business owner should get this type of insurance if:

Coverage offered

Medical Costs

Immediate and ongoing medical care costs are covered by the workers compensation insurer for the injured employee. The cost of surgeries, physical therapy, rehabilitation, prescriptions, medical equipment and prosthetics are all included under medical care. You can imagine that costs incurred can be exorbitant. Since there is no limit cap for payment of medical care and expense, the insurer is liable to pay for all of these expenses when a catastrophic claim occurs.

Lost Wages

If an injured employee is advised by their doctor that they are physically unable to return to work in any capacity (including “light duty work”) the employee will be reimbursed for their lost wages. The workers’ compensation carrier will pay , after a waiting period, which is typically 7 days, for a percentage of their wage loss, the percentage amount is typically 66 2/3% but this can vary by state statute.

Ongoing Care

In certain cases, the trauma of the injury or disease may be so severe that the employee is permanently disabled and will be unable to ever return to work. They will require ongoing care such replacement services for care, 24-hour nurse care, transportation and ongoing medical treatment for the rest of their lives. By buying workers’ compensation coverage, the business owner transfers the responsibility for these payments to the workers’ compensation insurance carrier. Although the employers liability is limited in the policy, the workers compensation is not and the insurer would continue to pay for care.

Death Benefits

If an employee tragically dies due to a workplace injury, the business owner is liable to cover the funeral expenses. Your workers’ compensation insurance covers the ‘death benefits’ and support payments to the dependents of the employee.

Legal Costs

If an employee injures themselves and thinks that the company is to blame, they might file a lawsuit. The costs involved in a lawsuit can be huge. If your workers’ compensation policy has Employer’s Liability Coverage, it will save the cost of attorney fees, court costs or settlements.

Hypothetical instances of workers’ compensation claims

Following are some common instances of Workers’ Compensation Claims:

Work Exertion

Construction employees working on a site are reaching the completion deadline. They thus work day in and day out. An employee suffers from a ligament tear in the muscle. He ends up missing weeks of work and needs medical care and has lost wages all of which would be covered by the Workers’ Compensation Insurance.

Exposure to Harmful Environments

Testing professional and researchers are required to be surrounded by several harmful chemicals. In case of a chemical spill, the employee may suffer from severe burns and rashes. Employees who are exposed to harmful environments require safety masks and body suits, helmets, gloves, and goggles. The employer would be required to pay for the injured employee’s hospital visits and medical expenses, this insurance covers these.

Slips and Falls

A majority of the slip and fall claims at workplaces happen on wet floors and snowy walkways. When an employee falls on the wet floor and injures them self, they may sue the employer because the floors should not have been wet during work hours. The employers liability included with the workers’ compensation insurance covers the employer for the attorney fees, court cost and judgement if awarded.

How can we help you get workers’ compensation insurance?

Read up about the overview of workers’ compensation insurance on our website. Contact us by phone or email for more queries. We match you up with a suitable insurance provider on our platform. We understand your needs as a business owner and provide you with a platform to request quotes, get proposals and bind coverage, all online. We’ll even save your information so that you can access it at any time.

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