Taking reasonable measures to ensure that the workplace is safe is a legal obligation for employers. But, unfortunately, accidents still occur. If this happens, workers compensation insurance can provide compensation.
What’s Workers Compensation Insurance
A workers compensation policy is an insurance policy paid for by employers that provides wage replacement and medical benefits to employees when injured while at work. Purchasing coverage for the employee’s gift does not give the employee the right to sue the employer for tort negligence. This system is referred to as the compensation bargain because it restricts both parties’ legal recourse due to injuries.
Understanding Workers Compensation Insurance
For a work-related injury or death, the employee or dependents are entitled to workers compensation insurance benefits. Employers provide this type of insurance, covering several benefits, including medical care, lost wages, and rehabilitation. As long as the worker is not under the influence of alcohol or drugs, workers compensation benefits are generally awarded no-fault. However, following an on-the-job accident, employers usually require employees to submit to drug testing. In addition, when a worker dies on the job, workers compensation can reimburse some lost wages and provide survivor benefits. In the event of a covered workers compensation loss, a workers compensation policy will pay employees’ medical bills, related expenses, and lost wages. When defined injuries occur, payments are usually made per predetermined schedules. Adjusters calculate the costs and make payments accordingly.
What Injuries Are Covered?
If an employee gets into an accident at work, expenses are covered by workers compensation; however, this will apply if the employee availed the insurance. Traffic accidents are the leading cause of workers compensation death claims when an employee is driving for work purposes, whether operating the company’s vehicle or driving his truck. However, workers compensation does not cover accidents to or from work. The workers compensation system also covers injuries suffered by employees due to work-related violence, terrorist attacks, and natural disasters. A worker’s compensation policy covers occupational illnesses as well. Chemical workers, for instance, may become ill from exposure to toxic chemicals.
Injured Workers Receive What Kind Of Treatment?
All medically appropriate and necessary treatment is given to injured workers. However, many states have adopted measures to contain expenses in response to escalating medical costs. Among these guidelines are utilization management guidelines, which specify acceptable treatment protocols and diagnostic tests based on specific injuries.
The Employer’s Responsibilities
There are no policy limits in workers compensation plans, so the insurer pays all benefits required by workers compensation law as listed in the declarations. However, employers may be liable for payments made by insurers that exceed regular workers compensation benefits. Employers are responsible for such costs under these circumstances because:
- Misconduct that is willful and serious
- Hiring illegal workers with knowledge of the law
- Noncompliance with health or safety regulations
- Any employee discharged, coerced, or discriminated against in violation of the workers compensation law
Having committed this misconduct, an employer must reimburse the insurer for any payments that exceed regular workers compensation benefits.
Workers Compensation Insurance Quick Facts Sheet
- Regardless of whether you miss time at work, your employer must pay for any medical care you receive if you are hurt at work.
- In most cases, employees cannot sue their employers for work-related injuries.
- Regardless of who caused your job injury, you are entitled to benefits.
- Employers are forbidden from punishing or firing an employee for requesting workers compensation benefits or having a job-related injury.
- Even if they are considered independent contractors, independent contractors may be covered by workers compensation as employees.