What Is Workers Compensation Insurance?
Employees are entitled to receive workers compensation insurance when accidents happen at work. Employers are legally responsible to ensure that their employees are safe in the workplace. Workers compensation insurance will cover injuries that happen in the workplace. It also covers injuries from workplace violence and natural disasters that happen at work. There are three purposes that workers compensation insurance serve. It covers the worker’s medical care when they are injured. It also covers a portion of the worker’s income when they cannot return to work. The insurance also protected the employer from lawsuits that grow out of injuries.
It does not matter who was at fault in the accident when the worker needs workers compensation insurance. If a worker is killed, the insurance will provide death benefits. Each state has different laws when it comes to the insurance. Each state determines the amount of the benefits and which injuries are covered. The insurance program is run by either the state alone, state-run agencies, or insurance companies.
The workers will receive all treatment needed under “workers comp”. When it comes to replacing income, benefits under the insurance are determined based upon the disability. The disability will have to be total or uncompletely for the benefits. In some states the benefits may be paid as long as the disability lasts or for a specific number of weeks.
only proprietors and partnerships do not need to buy this kind of insurance unless they hire employees. This is only in some states but not all states. In some states employers with only a few employees are exempt from purchasing the insurance. Different states dictate where the insurance is purchased. The premiums that are paid are based on the employer’s classification code and the employer’s payroll. Premiums are higher in places where there is high risk.
In many states accident records must be kept. The accidents must also be reported to the state workers compensation board. Although the workers compensation insurance usually protects the employer from being sued, there are instances where the employee is allowed to sue. This example is where “exclusive cure” does not apply.