Understanding Workers' Compensation Insurance

Understanding Workers' Compensation Insurance

17 May 2019
 Categories: , Blog


Workers' compensation insurance is the one that pays for the injuries of employees they have been incurred while working. It is basically a benefit that the company provides them. This coverage is mandatory in most of the states, which is why employers are obligated to buy this for their workers. The program entitles the employees to receive medical attention so they can have peace of mind in performing their daily tasks. If you are planning to hire employees for your business, you should know what this coverage is about.

How It Works

An injury or illness that is work-related should come from and occur during employment. The medical expenses linked to the treatment of an injury or illness incurred during work might be covered under the compensation of the worker. This is including the visit of a healthcare provider, physical therapy, hospital visits, medical equipment, prescription medication and other medical expenses. Alternative treatments like chiropractic care should be pre-approved. Workers' compensation insurance also covers wage percentages that were lost because of the injury or illness. The employee's absence should be related to the work injury, and the medical provider should authorise it.

Benefits Provided

The medical coverage includes medical expenses for the doctor, hospital care, nursing care, diagnostics tests, medications, physical therapy and even medical equipment. Disability is also covered which reimburses a portion of the wages that were lost in their permanent or temporary disability. There could be total or partial disability. The rehabilitation gives vocational training for the workers who need to change their occupations because of the injury. The death benefit is paid to the surviving spouse and minor children of the worker in case he or she were killed while performing job tasks.

Claims Process

The employers and their employees have several obligations as part of the compensation system for workers. Employers have the responsibility to shoulder their workers' compensation insurance. This could be achieved by buying the insurance from a registered insurance broker. In case the employer is unable to carry the coverage, they can be fined and the employee may file a case against them. The injured employer should report to their employer right away and they need to submit a form to their employer. They should report within a certain period of time to avoid losing their benefits.

This is what you need to find out about workers' compensation insurance in case you need to get it in the future for your employees.