A Guide On Workers Compensation Insurance

In most states, the law requires business owners to take workers' compensation insurance. As an employer, it is your responsibility to ensure employees have this coverage to reduce your liability for work-related injuries and illness. So, what are the different types of coverage under workers' comp insurance

Coverage for Medical Expenses

Workers' comp insurance helps to pay for the medical expenses of work-related injuries and illnesses. Such incidents and conditions may include accidents, diseases resulting from exposure to harmful chemicals or allergens, and repetitive injuries such as carpal tunnel syndrome. Typically, when an employee gets injured or ill while at work, they can sue the employer for medical compensation. However, with the workers' comp insurance, the insurer pays for the worker's visit to the hospital for emergency treatment, surgeries, and prescriptions. In some cases, work-related injuries or illnesses may be severe. Thus, workers' comp insurance will also cater to the cost of ongoing care such as therapy. 

Coverage for Missed Wages 

Worker's compensation insurance also helps to replace employees' lost income. Essentially, work-related injuries and illness mean that the worker will have to skip work during the recovery period. For instance, an employee who suffers a broken bone may miss work for weeks or months. In such a scenario, workers' comp insurance reimburses some of the employee's lost wages. Thus, the worker enjoys their right to continued salary, and the employer does not have to pay this amount from the business. 

Coverage for Disability 

Work-related injuries can result in temporary or permanent disability. For instance, a machine operator may lose one of his hands during work. Such an employee may be unable to return to work. Workers' comp insurance coverage will provide benefits to disabled employees. The insurance will cover the treatment cost and replace some of the lost wages through disability benefits.

Coverage for Vocational Rehabilitation Expenses 

Employees who suffer work-related injuries can also access vocational rehabilitation benefits. Typically, an employee who suffers an injury at work may no longer continue in the same type of work. Thus, workers' comp insurance caters for the training expenses enabling the employee to acquire new skills sets. This way, the worker may transition into a new job within the same company or increase their chances of obtaining employment elsewhere. 

Coverage for Funeral Costs 

In an unfortunate case, a work-related accident or illness may lead to the death of an employee. Subsequently, workers' comp insurance helps to meet the funeral costs. Also, the coverage provides death benefits to the workers' beneficiaries.  The eligible beneficiaries may include spouses, children, or parents. However, the policy limits the benefits to burial expenses for the workers who die without dependents. 

Ultimately, workers' compensation insurance provides benefits for the employer and employees. Contact your insurer today to assess your insurance needs and to help you select the right coverage for your workers.