Worker’s Compensation & Employer’s Liability
Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for negligence.
While plans differ among states, payments can replace wages (functioning in this case as a form of disability insurance), compensate for economic loss, reimburse or pay medical and like expenses (functioning in this case as a form of health insurance), and pay benefits to the dependents of workers killed during employment (functioning in this case as a form of life insurance).
Why do I need workers compensation insurance?
Even though you work hard to maintain a safe work environment, accidents happen every day.One study proposed that the annual cost of workplace injuries and illnesses is $250 billion. Workers compensation coverage is required in almost every state, with exceptions for the self-employed and some farm employees.Workers Compensation coverage affords the employer protection from lawsuits relating to workplace injuries and illness, as well as mitigating the costs related to the injured workers.
The risk of injuries and illnesses can range from sudden accidents -- such as falling off a scaffolding -- to injuries that happen over time, such as carpal tunnel syndrome, or illnesses that result from exposure to workplace chemicals, air pollution, or radiation.
What do Workers Compensation policies cover?
- Replacement income when employees are unable to work.
- Payments for medical expenses, including doctors' visits, surgeries, and prescription drugs.
- Vocational rehabilitation benefits -- including on-the-job training, education, or job placement assistance (depending on the state where the employee is injured).
- Death benefits when the workplace related injury or illness result in death.