Workers Compensation

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Insurance For Workers Compensation & Its Basic Functioning

Worker's Compensation Insurance 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 Workers Compensation Insurance?

A business owner must get  Workers Compensation Insurance type of insurance if:

  • The company is about to hire their first employee
  • Company’s owners or officers want to be covered by compensation
  • If worker compensation is statutorily required in their state
  • The business is in a high-risk industry
  • Coverage is contractually required for a job or project
A construction worker helping an injured worker

Workers Compensation Insurance 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 as 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. the employer's liability is limited in the policy, 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 experiences. Your workers’ compensation insurance covers the ‘death benefits’ such as support payments to the dependents of the employee. Offering this can help you retain quality workers for your high-risk business.

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 Insurance Claims

Following are some common instances of  Workers’ Compensation Insurance Claims:

Factory workers working on site

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 ligament tear in the muscle. He ends up missing weeks of work and needs medical care and lost wages all of which would be Covered by the Workers’ Compensation Insurance.

Exposure to Harmful Environments

Testing professionals 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 bodysuits, helmets, gloves and goggles. The employer is required to pay for the employee’s hospital visits and medical expenses. The insurance covers the amounts when the bills are produced.

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 themselves, they may sue the employer because the floors should not have been wet during work hours. The workers’ compensation insurance covers the employer for the attorney fees, court cost and judgment if awarded.

Hanging worker window washing a high rise building

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 patch 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 browse from some of the best insurance deals.

Frequently Asked Questions (FAQ) about Workers Compensation Insurance

1. How to choose a good workers' compensation insurance company?

To choose a good workers’ compensation insurance company, you should check their financial rating with company such as AM Best which provides a snapshot of the carriers rating, try to stay with an “A” rated carrier. You can also check with your state insurance commissioner’s site to make sure the insurance company is authorized to do business in your state. Aside from these factors, consider what is important to your company. Are you in a business that has a higher injury rate than most? If so, an insurance company’s loss prevention and risk management services available are worth checking into. Your agent can provide links to each carrier’s divisions so you can check out what they offer. Some insurers may offer free safety training or videos that you can show at a staff safety meeting. 

2. What are workers' compensation insurance requirements by state?

Each state has different workers’ compensation insurance requirements. To know more about it, check out your state on

3. Which type of workers' compensation claim is easy to process?

Medical-only type of claim that is the simplest to file and easiest to process.

4. How much is workers compensation insurance in Florida?

In Florida, rates are set per $100 of payroll, there are over 500 different job classifications with a specific rate set for each. The FL rates for a clerical employee in 2022 is $0.16 while a roofer’s rate is $11.41 per $100 of payroll. Payroll and loss experience are two of the main factors that determine your premium.

5. Is workers compensation insurance compulsory in the USA?

Workers' compensation insurance is required in nearly every state, requirements are different depending on the industry and the number of employees a business has. Workers’ compensation is governed by state law. There are some industries in which federal requirements and benefits come into play, these are railroad work, longshore and harbor workers, and work subject to the Jones Act (ocean going vessel workers), there may be more.

Click here for more Frequently Asked Questions on Workers' Compensation Insurance.

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