Workers’ compensation is a vital tool to assisting in the recovery of an employee. Whether it provides medical expenses, income replacement, or other benefits, most states require that employers have workers’ compensation insurance. By purchasing this insurance, companies are not on the hook in the event of a workplace incident.
Workers’ compensation insurance is an often mandatory policy that employers must pay into in order to ensure that their employees can make a workers’ compensation claim. In most states it is required to pay into it in order to ensure employees are taken care of in the event of a workplace accident.
Workers who are employed by the company and suffer a qualifying illness or injury may make a workers’ compensation claim. Subcontractors are not necessarily covered by a workplace’s workers’ compensation insurance.
Any illness or injury that can be definitively traced back to the workplace can be grounds for a workers’ compensation claim. The exceptions for this are injuries or illnesses caused by intoxication, interpersonal fights, or that occur during the employee’s commute.
First, a work-related injury must be documented. If not documented, a workers’ compensation claim cannot be made. Next, the company’s insurer and relevant state authorities should be notified. Once the insurer receives the reported injury they will begin the process of verifying and either approving or rejecting the claim.
Workers’ compensation can award a number of benefits to employees including coverage of medical treatment, replacing lost wages for recovery time, providing disability benefits, and awarding death benefits in the event that a worker passes away. By properly acquiring workers’ compensation insurance, employers can ensure that their employees are taken care of in the event of an accident.
