A commonly misunderstood topic that is vital for businesses to get right is Workers Compensation Insurance. Payroll Managers offers a complimentary review of your company’s current Workers Compensation policy, with a view toward helping you find better, more affordable coverage. We can also answer your questions about Workers Comp, and how best to get the best coverage for your business. Below are the top eight frequently asked questions our insurance professionals get about Workers Compensation.
1. What Is Workers Compensation Insurance?
Workers Compensation Insurance protects your company and employees from financial loss in the event an employee becomes injured, disabled, or sick due to a work-related accident or cause. It protects your company by covering losses from employee medical treatment costs and other related things, and by preventing any legal recourse from the employee. Employees surrender their rights to pursue legal action against their employer regarding a work-related accident or sickness, in most cases, by accepting Workers Compensation. It protects your employees by ensuring that they are cared for, and provided for on a limited basis, in the event of work-related sickness, disability, or injury.
2. What Is Covered by Workers Comp?
Workers Compensation Insurance covers the costs of medical treatments, hospital stays, rehabilitation, ongoing care, a portion of the employee’s lost wages, and in some cases, funeral expenses if the employee dies due to a work-related accident or illness. Workers Compensation Insurance is mainly left up to the individual states to design, resulting in a wide variation of coverages between states. An insurance specialist from Payroll Managers can help you with specific explanations about what policies in your state will actually cover.
3. What Is Not Covered by Workers Comp?
As earlier stated, Workers Comp laws vary from state to state, meaning that policies in differing states will cover and not cover differing items. Some common examples of issues that are generally not covered by Workers Comp include:
- Injuries incurred in a fight started by the employee – his or her injuries would not be covered by Workers Comp.
- Injuries incurred by an employee who is intoxicated by alcohol or drugs in the workplace.
- Any intentional injuries incurred by an employee in the workplace.
- Emotional injuries that are not accompanied by a physical workplace injury.
An insurance specialist from Payroll Managers can offer more specific exclusions for businesses in your state as part of our complimentary Workers Compensation Insurance review.
4. Who Pays for Workers Compensation Benefits?
Employees are not responsible for paying any part of Workers Compensation Insurance. It is an expense solely covered by the employer. Companies purchase Workers Comp Insurance from commercial insurance providers, state brokers, or through independent brokers like Payroll Managers that can offer policies from many companies to best fit your company’s needs. Every state except Texas and New Jersey requires business to carry Workers Compensation Insurance.
Employers who do not pay for benefits typically purchase Workers Compensation Insurance to cover the benefits for employees. The cost of Workers Comp Insurance depends on your state’s laws, the size of your company, the type of work performed by your employees, the risks present in your workplace, and several other factors.
5. Do I Have to Have Workers Compensation Insurance?
Most states require businesses to carry workers’ compensation insurance if they have at least one employee. Larger companies may elect to insure their workers themselves, covering any medical or other costs, but this must be approved by the state in which they operate, and there are stringent self-insurance requirements that must be met.
Some types of workers that are not covered by Workers Comp include:
- Domestic workers in private homes
- Independent contractors
6. What Should an Employee Do if Hurt on the Job?
There are strict guidelines for filing a claim for Workers Compensation in the event of an injury or sickness. If an employee sustains an injury while on the job, they should report the injury to their supervisor immediately. When the injury is reported, the supervisor or other designated company representative must complete a report that includes:
- Date and time of the injury
- Circumstances surrounding the injury
- Who was involved in the accident/incident
- The injured employee’s name, address, and contact information
Each state has guidelines for how soon an injury must be reported, but it is always best to report an injury as soon as possible after it happens. Any job-related sickness that is obviously growing worse should be reported as soon as the employee receives a medical diagnosis, or as soon as there is evidence that the sickness is related to their job.
7. If an Employee Is eligible for Workers Comp Benefits, Are They Also Eligible for Disability, Unemployment, or Social Security Benefits?
States will differ in their laws that govern the various types of benefits that are available to injured or disabled employees. A Workers Compensation claim is not automatic eligibility for other types of benefit programs in your state. In fact, an employee’s Workers Comp benefits may actually affect whether or not they qualify for other benefits, and/or the amount of benefits available. An insurance specialist from Payroll Managers will be glad to review your state’s laws and other factors to provide more specific answers.
8. How Do I Get Workers Compensation Insurance?
Payroll Managers provides various types of Workers Compensation Insurance for companies of all different sizes and with various needs. We offer a complimentary review of your current policy to help you find the absolute best coverage at the best price. Call us today at 1-866-684-5684 or contact us online to inquire about Workers Compensation Insurance for your business.