Any employee at a company can be injured on the job. Worker’s compensation insurance is a safety net when this happens. It protects the company and the employees from expenses such as health care costs, legal fees, and lost wages. Workers comp has to be carried by the employer. Depending on circumstances, there are different ways an employer may handle insuring employers for worker’s compensation claims.
What Types of Worker’s Compensation Insurance Is Out There?
Works comp is required in most States. You should check out your state laws for the details on this. Your employer will carry insurance from a state-run insurance program, run a self-insurance program, or work with a private insurer, depending on local rules and business preferences. Check with your employer to find out more.
How Does State-Run Insurance Work?
These programs are typically run by a state’s labor, commerce, or industrial department. With State ran insurance, the employer pays premiums to the State. When the employee gets hurt or is sick from a job-related incident, the State handles the claim and pays the appropriate payments.
How Does Self-Insurance Work?
A self-insured company has opted to insure itself. There are important factors that go with this. A state may require the company to prove that they are sufficient enough to pay claims. They also have to agree to oversite, in some states.
A self-insured company has responsibilities it must adhere to. Here are some of those requirements:
- Filling out their own worker’s comp paperwork.
- Monitoring and processing worker’s comp claims.
- Calculating how much is owed to the injured worker.
- Making sure of the benefits and being sent to the employee.
How Does Private Insurance Work?
Private insurance is simply when your employer uses an insurance company to cover worker’s claims. This is one of the most common ways that employers provide coverage.
What Does It Cover?
Worker’s compensation covers, but is not limited to:
- Lost wages
- Medical expenses
- Long term care
- Funeral cost
What Doesn’t It Cover?
There are some situations that workers comp will not cover. Some of these are such as:
- Injuries from a fight
- Injuries due to intoxication
- Injuries an employee intentional causes
- Emotional injuries unrelated to a physical workplace injury
No matter how your employer insures, they need to carry worker’s comp insurance to adhere to the law. Accidents can happen anytime, in any kind of work setting imaginable, so if you have any questions pertaining to worker’s compensation, you should contact a lawyer near you.
