It is important, both as an employer and an employee, to understand what a workers’ compensation insurance is and how it can benefit you if an employee gets hurt on the job. Let’s take a look at the most frequently asked questions related to workers’ comp insurance.
What is workers’ compensation insurance?
Workers’ compensation insurance helps protect your company from any financial losses or litigations and covers your employees when they get injured on the job or get sick due to work-related causes. It is also commonly known as workmans’ compensation, workers’ comp, and workmans’ comp.
What does workers’ compensation insurance cover?
Workers’ comp mainly covers an employee’s medical expenses caused due to injuries or illnesses, ongoing care costs, lost wages, and funeral expenses in case the employee dies due to a work-related accident or illness.
What is not covered by workers’ compensation insurance?
In some situations, the insurer is not liable to pay for workers’ compensation, especially in cases of negligence on the employees’ part. Such instances include accidents caused due to negligence of an intoxicated employee, injuries sustained intentionally, etc.
Who pays the workers’ compensation benefits?
The insurance provider from whom the employer has purchased workers’ comp pays the benefits.
What should an employee do if injured on the job?
When an employee is injured on the job, they must report it to their supervisor immediately. The report should include the date, time, and circumstances of the injury. Work-related illnesses should be reported as soon as they have been diagnosed.
How can I file a workers’ compensation claim?
When an employee is hurt on the job, you must gather the injured employee’s details and details of the accident or illness. It is crucial to file a workers’ compensation claim as soon as possible, within the time frame that your state has imposed to report the claim to your insurer.
How does workers’ compensation insurance work?
Workers’ compensation insurance covers the lost wages of an employee off work while recovering from a work-related injury or illness. It also covers their treatment and ongoing care costs when they return to work.
Is workers’ compensation insurance mandatory?
Most states except Texas have made it compulsory for any employer with one or more employees to carry workers’ compensation insurance. Large companies may insure themselves, but they must strictly adhere to the state’s strict self-insurance requirements.
How do I get workers’ compensation insurance?
Depending on your requirements, you can choose to go with private insurance companies or state-funded workers’ compensation programs. It is vital to examine all the factors that determine the amount you pay for your policy, such as the number of employees, your payroll size, the type of work your employees will be doing, etc.