What You Need to Know About Worker’s Compensation Insurance

Whether your moving company has an employee who injures their back lifting boxes or your veterinary office has an animal attack, worker’s compensation insurance protects both you and your employees. The exact details of workers’ comp coverage vary from state to state, so consult a policy or contact an insurance professional to learn more. Learn more at Insurance Agency Outsourcing Services.

Employer’s Liability

Most states require that businesses provide workers’ compensation coverage for their employees. While the specifics vary by state, most allow business owners to purchase insurance either through a private insurer or a government-regulated fund. In those states that permit private insurance, premiums are often determined by a system known as experience rating. This modification of class rates rewards safe businesses with lower premiums and penalizes unsafe ones with higher premiums.

Many policies also include employer liability coverage, which provides insurance against lawsuits and settlements for work-related injuries or illnesses that fall outside the scope of workers’ comp. While not as comprehensive as workers’ comp, employer liability can help protect a business against severe financial hardship liabilities. It also covers situations in which a third party may sue for damages over an injury or death caused by the employer’s negligence. For example, if an employee is injured using a piece of equipment purchased from the employer, the manufacturer could sue claiming improper use or modifications.

Medical Expenses

A workers’ comp policy typically covers medical expenses for an employee who is injured at work. This includes doctor visits, hospital stays and surgery, as well as prescription medications. It also provides for physical or occupational therapy, and coverage of some lost wages.

Unlike personal health insurance, which often has deductibles, workers’ comp insurance doesn’t have those fees. However, there are limits to how much treatment a worker can receive as part of their claim. In some states, utilization management guidelines set acceptable treatment protocols to help control costs.

In addition, the insurance may cover some of the cost for retraining to help an injured worker return to work within restrictions set by their doctor. It can also cover death benefits to the family of an employee who dies due to a job-related injury or illness. Each state sets its own laws and insurance rates, so specific coverage details vary widely. But a business owner needs to have this coverage to comply with state law and protect their employees.

Temporary Total Disability Benefits

A worker may be entitled to temporary total disability benefits if their injury or illness prevents them from working. This is typically based on two-thirds of their average weekly wages before the injury. Some states also set a maximum weekly benefit amount.

These benefits cease when a medical determination is made that the injured worker has reached maximum medical improvement, or can return to work at full pre-accident capacity. This is determined at an impairment rating evaluation or a workers’ comp hearing.

Each state sets its own workers’ comp laws based on the types of work and risk that employers face in each area. Workers’ comp covers medical costs, a portion of the injured employee’s lost wages, and even death benefits. This system is designed to help injured workers get back on their feet quickly so they can return to the workforce. Injured employees should consult with a workers’ compensation lawyer for more information.

Death Benefits

Losing a loved one through a work-related injury or illness is a tragedy no family should have to endure. Even though the loss of a family member will never be fully repaired, surviving spouses and children may be entitled to death benefits coverage under workers’ comp.

Survivors of a deceased worker will receive payments based on their relationship to the worker, and the rules can vary by state. A spouse, for example, will be entitled to weekly payments until their death or remarriage, while children are typically eligible until they reach a specified age or complete certain types of post-secondary education.

While no amount of money can bring back a loved one, an experienced workers’ comp lawyer can help families secure the proper compensation to assist with financial needs. Contact an attorney for a free case review and comprehensive information on your options today. Martindale-Hubbell’s prestigious client champion rating is your assurance of our dedication to excellence.