What is Workers’ Compensation?

Workers’ compensation is insurance that provides cash benefits and or medical care for employees who become injured or fall ill while working at their job. Employers are responsible for paying for this insurance and this doesn’t require the employee to contribute to the expenses of compensation.

All About Workers’ Compensation

In workers compensation cases, there is no one party that is considered to be at fault. The amount that an employee will receive is not decreased by his or her carelessness, nor is it increased by the fault of an employer. However, an employee may lose his or her right to workers’ compensation if the injury results from his or her intoxication of alcohol or drugs or from the intent to injure him/herself or another person.

Workers’ compensation rates are determined for every class based on the prior five years of loss costs for all businesses within that class. This provides an equitable system where rates are charged commensurate with the actual loss of the experience of the class of business. There are various economic factors for each state that are overlaid onto this data to later figure out the rate for each class in a given state.

How do Workers’ Compensation Claims Work?

The employee that has been injured must visit a doctor immediately following their injury or illness so medical reports can be provided to support any claims. Employees will then be able to begin the claims filing process with their insurance company, making sure to include state-mandated forms or paperwork. Once these claims have been approved, the employee will receive their compensation payments and will be able to return to work when they feel they are ready.

Who is Required to Carry Workers’ Compensation Insurance?

All states, with a small number of exceptions, require companies that have employees to purchase workers’ compensation coverage for their employees.

Companies that fail to provide such insurance can face severe and expensive repercussions such as payment of claims, fines, and possible imprisonment. Additionally, they may lose the right to conduct business in the state they reside in.

Common Examples of Workers’ Compensation Benefits

There are various reasons and circumstances that deem a worker eligible to file a workers’ compensation claim including:

Overexertion

This includes the straining of the body or putting too much pressure on yourself. If you are accustomed to working four hours a day but suddenly jump to 10 hours a day, you may cause overexertion. This can result in a muscle or ligament strain.

Slips and Falls

It is expensive for an employer when an employee suffers injuries while on the job. As a result, employers may go out of their way to enforce such safety standards and regulations to keep their workers protected. This includes making their employees wear non-slip or steel-reinforced footwear, and gloves, or they may place warning signs in hazardous areas.

Being Struck by an Object

This can occur when something falls from a higher level onto a worker. It is a very common accident in construction zones when roofing and flooring are not yet in place and materials are being lifted to higher areas.

Machinery Accidents

This is not as common as others, but machinery accidents are still the cause of common injuries that take place in the workplace. Many jobs don’t require the use of heavy machinery, but those with construction or factory jobs are put at a much higher risk of getting crushed or from injury.

Falling

Falling, believe it or not, is a hazard in workplaces and happens often. Whether it is a fall from a ladder, roof, or stairs, it is easy for a worker to lose their balance and fall. Falls typically result in strains and sprains but can cause more serious injuries such as broken bones and even death.