What is Workers Compensation?
Workers Compensation Insurance is an insurance policy that provides benefits to employees that are injured or gets an illness as a result of work-related activity. In the instance of an injury or qualifying illness, the insurance company will take care of the benefits to the employee specified under the law.
Not every state requires that you have Contractors Workers Comp Insurance. Regulations vary from state to state but in general, you are required to carry coverage if you employ more than 3 to 5 workers. Even if you are not required to carry coverage it is smart to protect your company from a litigious society. Just because you are not required to carry Workers Comp Insurance does not mean you are not liable for the injury or illness that occurs on the job.
Do You Need Workers Comp Insurance?
Most states require that every company that has more than 1 employee to have Workmans Compensation coverage. There are some exceptions to have workers comp insurance; those include company officers and agricultural operations.
Call us to speak to a broker about your risk management requirements.
How does Workers Comp protect your business?
- Medical Benefits – Contractors Workers Comp Insurance will cover all of the medical expenses that are required to take care of the effects that have occurred from the work-related injury. The employer or their insurance company will either pay the benefits. With the rising cost of health care, you can only imagine how quickly these costs can add up.
- Temporary Disability – An employee is granted Temporary Disability if their doctor determines they are unable to work because of the injury. Benefits are not paid until the employee is off of work for more than 14 days. In most states, the amount of compensation that an employee can receive is 2/3s of the employee’s weekly pay. Temporary Disability benefits are paid until the employee is released to work.
- Permanent Disability – Permanent Disability benefits are paid to employees that have been determined that they are unable to find a job on the open market. Employees receive benefits based on the date of the injury, age of the employee, and the occupation, which caused the injury.
- Vocational Rehabilitation – Vocational benefits help to train employees for a new area of work if the employee is unable to return to their previous position.
- Death Benefits – Death benefits are paid to the dependents of the employee in the case of death due to workplace injury or illness.
What Injuries Are Covered by Worker Comp?
Each state has its own laws regarding Workers Compensation Insurance coverage, below are a few of the common injuries that are covered under these laws.
- Physical Injuries – These types of injuries are a one-time event as opposed to happening over time. An example of this is when an employee falls off a ladder and breaks an arm.
- Repeated Injury – These types of injuries occur over time due to repetitive movements. An example of this injury would be a tile worker who is bent over all day and acquires a back injury.
- Occupational Illness – Most states classify an occupational illness as a condition that is picked up from working with toxic chemical like asbestosis. These are illnesses that develop over time.