Understanding Worker’s Comp: A Brief Guide

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by Daniel McClain on Jan 20, 2015

Federal law requires that employers provide worker’s compensation to each of their employees.  And many employers wrongly assume that this evens the playing field, and makes rates the same from company to company.

Man injured at work, workers comp

This however is simply not the case.  Instead, the world of worker’s compensation can be a confusing one to navigate.  Here, to help you more effectively navigate that world, we have compiled this list of a couple of the most important things you should know before purchasing a worker’s compensation insurance policy.

What Injuries and Illnesses Worker’s Compensation Covers

The first thing you need to know about worker’s compensation is what exactly it covers.  In effect, worker’s compensation policies cover two main categories of injuries and illnesses:

  1. Injuries and illnesses that are directly caused by an accident in the workplace.  This would be any event that took place at work that resulted in an injury or illness.
  2. Injuries and Illnesses that are slowly developed in the workplace.  This would be an injury or illness that is caused by the kind of work, rather than one specific instance.  This would cover strain related to heavy lifting, or something similar.

In addition to those two main types of worker’s compensation coverage, it is also important to note that worker’s compensation is a no fault insurance type.  This means that it will compensate your employees no matter who is considered to be at fault for the accident.

What Worker’s Compensation Pay-Outs Will Cover

Some employers believe that worker’s compensation insurance will only cover medical expenses, but that is not necessarily the case.  Because injuries can lead to more than simply short term medical expenses, there are many more things to be covered.

Among covered expenses are medical costs, a percentage of the salary, job rehabilitation, modified employment for the transition between recovery time and fulltime work.

Obtaining a great worker’s compensation policy is essential to your company, and the experts at Insurance Center Associates are here to help! Contact us today for more information.

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