What Is Worker’s Compensation Insurance

Worker’s compensation insurance is a great way to compensate injured employees without giving too much trouble to the employer. In most US states, the employer is legally obliged to have a worker’s compensation. For big businesses worker’s compensation is compulsory in every state. But, even in states where it is not compulsory, employers still choose to have worker’s compensation insurance because it is beneficial for them.

Worker’s compensation is an insurance program for the employer. The employer has to pay for insurance. So, they will be able to choose the insurance company. They can also add some terms to worker’s compensation insurance. But, there are some basic terms that need to be present. The worker’s compensation law defines those basic terms. It is done to make sure that the injured employee gets the proper care that he/she needs. When an employee is injured, it is the employer’s job to file for the insurance. But, the employee has to notify the employer about their injury first. Like any other insurance, the worker’s compensation insurance can also be denied. In that case, the employer and the employee may need to take legal action against the worker’s compensation insurance company. So, why would an employer take legal action against the insurer for compensation that the employer will not receive? That’s because the employee may sue the employer to get the compensation they want. Employees cannot sue the employer if they are granted the worker’s compensation insurance.

Employers do benefit from worker’s compensation insurance as it helps them avoid any compensation for workplace insurance. But, the main beneficiaries of the worker’s compensation are the employees. Worker’s compensation insurance covers any expenditure that would not have been required if the injury didn’t occur. It doesn’t matter who is at fault ( the employer or the employee ) to determine the eligibility for a worker’s compensation insurance claim. This results in quicker treatment and rehabilitation for the employees as they will not have to waste their time proving their innocence.

Workers’ Compensation Insurance: What Is Covered?

The common expenses covered by worker’s compensation insurance are:

• Lost wages — Any kind of income that you would have earned if not for the injury will be compensated through worker’s compensation insurance.
• Future lost wages — This means if your ability to work is compromised permanently due to the injury and nothing can fix the problem you become eligible for extra compensation.
• Medical Costs — This is the most important reimbursement that anyone suffering from workplace injury needs. Every medical bill acquired to treat your workplace injury will be covered by worker’s compensation insurance. Plus, transportation costs of going to the hospital, and coming back will also be included in medical costs. This may include ambulance cost, bus fare, taxi fee, e.t.c. The insurance will also cover the costs of medical aids like a wheelchair, hearing aid, e.t.c if required. If the treatment is not complete the insurer also has to cover future medical costs.
• Survivor Benefits — If the employee is killed, the family of the victim will receive the worker’s compensation benefits.

Workers’ Compensation Insurance: What Is NOT Covered?

Here are the things that are covered in a personal injury claim but not in a worker’s compensation claim:

• Pain and suffering
• Emotional Distress
• Punitive damages