How Does Workers’ Comp Insurance Work?

Workers compensation insurance gives employees benefits if they become injured or sick on the job. Commonly referred to as workers comp insurance, and is coverage that can help to cover injured or ill employees. It is designed to replace lost wages and pay for medical costs. 

Workers comp can help to;

• Support companies in various industries
• Promote employee safety
• Get employees back to work or transitional work
• Provide access to training for new skills

The majority of states require businesses to carry workers compensation insurance if they have at least one employee. Although, workers compensation insurance requirements will vary from state to state. Workers compensation is ultimately protection for the business owner and the employees of their company. 

Workers’ Comp Insurance Benefits for Employees

When it comes to a sick or injured employee, workers compensation benefits depend on the actual injury. As well as state requirements and the specifics within the policy. Occasionally it can give employees access to vocational rehabilitation, and compensation for permanent injuries, as well as survivor benefits. 

Workers’ Comp Insurance Benefits for Employers

Employers with workers compensation insurance are protected as a business owner as well. If you do not have workers comp and have at least one employee, you will be financially responsible if your employee gets hurt or becomes ill. In additional, there are other very severe penalties that you may be at risk of. 

Who pays for workers compensation insurance

Even though workers comp will protect employees, they are not the party responsible of paying for the coverage. Typically the employer pays the insurance company for coverage. 

Workers compensation claims can vary from state to state. Usually, the employee will need to notify the employer first and the employer will start the claims process. They typically have a certain amount of time to notify you of the injury or illness. If they wait too long there is always the chance you as the employer will not be able to file it. This can also mean they lose benefits. 

What Injuries Are and Are Not Covered by Workers’ Compensation Insurance?

Workers compensation insurance covers injures that are the result of an accident. Please keep in mind, there are situations where workers comp will not cover an injury. Let’s take a look at what workers comp may not cover;

• Carpal tunnel
• Back injuries from repetitive movement
• Injury to the lungs for breathing toxic substances
• Slip and falls at work
• Injuries sustained in a car accident while driving for business

Examples of when workers compensation insurance may not provide coverage;

• Benefits can be denied if blood/alcohol tests reveal the employee was under the influence at the time of the injury
• Self-inflicted injuries
• The employee was violating a law or company policy
• The employee was not on the job at the time of the injury

Covered Employees

Workers compensation insurance will cover many different types of employees. Although, states have different rules and regulations. There are particular employees that some states may exclude from workers comp benefits. Some of these employees may include;

• Independent contractors
• Business owners
• Volunteers
• Employees of private homes
• Farmers and farmhands
• Maritime employees
• Railroad employees
• Casual workers

How Much Does Workers’ Compensation Insurance Cost?

Workers compensation insurance rates will vary from state to state. Workers comp rates have a few factors that determine the premium as well. Some of those factors may include;

• The industry your business is in
• The number of employees you have
• The safety record of your business
• The size of your payroll

If you would like to get a free workers compensation insurance quote to find out the exact amount you qualify for, please give us a call at 916-273-8391