In the event of a work-related injury or illness, employees may be able to receive benefits through workers’ compensation insurance. Employers offer workers’ comp to employees to cover certain costs resulting from injuries or illnesses.
What Exactly Is Workers’ Compensation?
To help protect both employees and employers, most states require businesses to offer workers’ compensation benefits to employees through workers’ comp insurance. Failure to do so could result in fines or legal repercussions. As long as a business has employees, it should have workers’ compensation insurance, which is obtainable by phone, online, or with the help of insurance agents.
Workers’ comp insurance can cover a wide range of employees to provide compensation. If employees are injured at work or develop illnesses as a result of hazardous environments and exposure to harmful chemicals or diseases, workers’ compensation can cover medical expenses, along with other economical and non-economical damages to help prevent them from facing financial hardship.
Employees who may benefit from workers’ compensation insurance include business owners, independent contractors, volunteers, farmworkers, railroad employees, employees of private homes, casual workers, and maritime employees.
What Types of Injuries Can Workers’ Comp Cover?
Workers’ compensation insurance can cover the costs of a variety of work injuries or illnesses, providing compensation for medical bills and lost wages. In some cases, workers’ comp insurance may also cover legal fees if employees file a lawsuit against a business.
Generally, workers’ compensation can cover the costs of injuries or illnesses that are work-related. Workers’ comp can even cover injuries if the employee is injured at work while off-site, such as injuries resulting from a car accident that occurs while completing a delivery. However, it won’t cover injuries sustained while commuting to or from work, nor will it cover injuries that are self-inflicted.
How Does the Claims Process Work?
If an employee is injured or becomes ill due to work-related accidents or hazards, employees can file a workers’ compensation claim. Both the employee and employer will be required to follow certain steps during the claims process.
The first step for an injured or ill employee to take is to report it to the employer as soon as possible to ensure eligibility. After the employee reports to the employer, the employer will need to provide the employee with corresponding forms and paperwork. The employee is then required to complete these, after which the employer will file a claim with the insurer. Depending on the state, employers may also need to notify the state’s workers’ comp board or agency.
If employees are unhappy with the results of the claim, they have the option to appeal the board or agency’s decision.
What Is the Cost of Workers’ Compensation?
The rate or premium that an employer pays for workers’ comp insurance will depend on the industry, the company’s history, the number of employees, and the rate of pay for employees. The cost will also vary depending on the requirements in a particular state.
Keeping all of these aspects in mind can help both employers and employees navigate the workers’ compensation process in the event of a work-related injury or illness.