How Does Workers’ Compensation Insurance Work?
What You Should Know About Worker’s Compensation Insurance
When one of your employees gets injured or sick on the job, having workers’ compensation insurance becomes useful, as it can pay for your workers’ medical bills and rehab costs. It can also cover partial lost wages.
There are many benefits to workers’ compensation insurance, not just for employees but for employers, too. However, people often find themselves confused about how it works. Here is some necessary information that will help you understand the ins and outs of this type of insurance policy.
Who Pays for It?
Employers are the ones responsible for purchasing workers’ comp insurance coverage to protect their employees and their companies, also. Workers’ comp insurance provides many benefits to the employee; however, it is not a requirement for them to contribute to its cost.
What is the Workers’ Comp Claim Process?
Although the claim process for workers’ comp insurance may vary from one state to the next, there is somewhat of a general method. If one of your employees gets sick or injured at work, they must report it to you within an established period; otherwise, they may lose their chance to file a workers’ comp claim, and thus, lose their benefits.
Once you become aware of the illness or injury, you can file a workers’ comp claim, and then the application will be processed by either your state’s Workers’ Compensation Board or an agency. Then, the board or agency will instruct the insurance company to release the benefits and payments to the employee.
The employer is required to report the incident to the Occupation Safety and Health Administration. Depending on the severity, you may be required to report it within eight to 24 hours.
What Does Workers’ Comp Cover?
These are some of the incidents or illnesses covered by workers’ comp:
- Back injuries from repetitive movement
- Slip and fall accidents at work
- Carpal tunnel
- Injuries caused by a car accident that occurred while driving for business
- Lung injuries caused by breathing toxic substances
What Will Workers’ Comp Not Cover?
- Your workers’ comp insurance won’t provide coverage under certain circumstances such as:
- Injuries didn’t happen on the job.
- Injuries occurred while breaking company policy or the law.
- Injuries were self-inflicted.
- Alcohol/blood test reveals injuries happened while the employee was under the influence.
Feel like you need more information? Contact us, and one of our agents will go over your questions with you.