Workers Comp Insurance
What is Workers Comp?
Workers’ compensation is insurance that provides cash benefits and/or medical care for workers who are injured or become ill as a direct result of their job.
Employers pay for this insurance and shall not require the employee to contribute to the cost of compensation. Weekly cash benefits and medical care are paid by the employer’s insurance carrier, as directed by the Workers’ Compensation Board. The
Workers’ Compensation Board is a state agency that processes the claims. If Board intervention is necessary, it will determine whether that insurer will reimburse for cash benefits and/or medical care, and the amounts payable.
In a workers’ compensation case, no one party is determined to be at fault. The amount that a claimant receives is not decreased by the claimant's carelessness, nor increased by an employer’s fault. However, a worker loses the right to workers’ compensation if the injury results solely from their intoxication from drugs or alcohol, or from the intent to injure themself or someone else.
A claim is paid if the employer or insurance carrier agrees that the injury or illness is work-related. If the employer or insurance carrier disputes the claim, no cash benefits are paid until the workers’ compensation law judge decides who is right. If a worker is not receiving benefits because the employer or insurance carrier is arguing that the injury is not job-related, that worker may be eligible for disability benefits in the meantime. Any payments made under the Disability Program, however, will be subtracted from future workers’ compensation awards.
If you can return to work but your injury prevents you from earning the same wages you once did, you may be entitled to a benefit that will make up two-thirds of the difference. You may also return to work in light or alternate duty before you are fully healed.
Who is required to purchase Workers' Compensation?
Most states require businesses to purchase Workers' Compensation for their employees. Each state has its own respective Workers' Compensation rules and regulations.
Employers should understand Workers’ Compensation coverage requirements to ensure that they are complying with the law. Failure to have Workers’ Compensation insurance puts employees at risk and subject employers to penalties and stop work orders.
What are some Workers' Compensation benefits?
Workers' Compensation can protect both business owners and employees by providing the following benefits after a work-related injury or illness:
Medical Expenses from a Work-related Injury or Illness
Ongoing Therapy or Care of an Injured Employee
Death Benefits/Funeral Costs