Workers’ compensation insurance is an important part of any employee’s work life. While each state mandates workers compensation insurance in the USA, the conditions vary from state to state. Thus, it is imperative to know how workmans’ compensation works.
Here is a simple guide:
What is Workers’ Compensation Insurance?
Workers’ compensation pays medical expenses, compensates a portion of lost wages, and aids rehabilitation costs to employees who become injured in the course of their job. It may also give death benefits to the employee’s families in case of death while performing their job.
Who is required to get Workers’ Compensation Insurance?
All states require businesses with employees (who are not owners) to purchase workers’ compensation coverage. Part-time, seasonal, and minor employees are also included. So, even if you have one employee in your business, you will still need workers’ compensation insurance. It is mandatory for an employer to have a workers’ compensation insurance or to be approved for self-insurance.
What happens if I don’t have workers’ compensation insurance?
There are severe repercussions for a business if they fail to get Workers’ Compensation Insurance such as fines, payment of claims themselves, and, in extreme cases, a company may lose its right to operate in the state.
What is covered?
The workers’ compensation insurance is regulated at the state level. Hence, each state has different rates and coverage requirements.
How much does workers’ compensation insurance cost?
The cost of the policy varies according to every business. The major determinants of the cost are the industry, size of the workforce, payroll, and previous claims.
How Do I Get The Benefits?
An injured employee may be entitled to weekly or monthly indemnity benefits if the injury prevents them from returning to work for more than fourteen days.The employer or the insurer is required to pay for approved necessary medical expenses and all unavoidable travel expenses incurred to obtain treatment. The injured employee has the right to select one doctor of their choice in each specialty field.
Once a claim is settled, the insurer, most of the time, pays the employee a lump sum. Once a settlement is agreed upon, a worker cannot make claims to insurers and employers related to that injury.