Workers Compensation Insurance: What You Need to Know

Workers compensation insurance is a must for all companies that hire workers, and the organizations get protection against liabilities. If a worker is injured on the job, the employer must send the worker for an assessment to evaluate the injury and how it will affect the person’s ability to work. When hiring workers, all companies must comply with insurance laws and ensure the work adheres to OSHA regulations. If a worker is injured, the insurance could provide assistance to reduce liabilities and lawsuits.  


Federal Laws Require It

Federal laws dictate what type of accident coverage all business owners must have to protect their workers. If the owner hires more than one worker, the laws require worker’s compensation coverage.

The government doesn’t care if the workers are relatives the coverage is still required. Business owners who want to review worker’s compensation policies review policies by contacting the Scotti Insurance Agency now. 

What Does the Policy Cover?

The worker’s compensation policy covers all medical costs related to the worker’s accident and injuries, and the workers receive wage replacement benefits if the employees cannot return to work immediately following a medical assessment.

The highest wage replacement available through the policies is around 80 to 90% of the worker’s wages. Any medical services the worker needs beyond the initial assessment are covered, including physical therapy and any surgeries required to correct the injuries.  


Workers Compensation Insurance: What You Need to Know


How Do You Start a Claim?

The human resources manager starts the claim by providing the worker with claims documents and sends the injured worker to the emergency room. The doctor completes a medical report and sends the report back to the insurer for an evaluation.

If the claims adjuster declares that the worker’s injuries meet all specifications in the policy, the worker receives benefits. The worker receives an award letter in the mail if the injuries are approved, and the person receives a denial letter if the injuries do not qualify under the terms for coverage.  

Can the Worker Continue to Get Benefits If They Leave?

Yes, if the worker chooses to take another job and leave the company, the injured party can continue to receive worker’s compensation benefits.

However, the worker cannot perform any tasks that the person wasn’t able to do for the policyholder, and if the worker earns more money, the benefits could be reduced. If the worker makes more than 50% of their current wages with the new employer, the benefits stop.  

What Happens If the Insurer Denies the Worker the Benefits?

If the claims adjuster denies benefits, the injured worker could speak with an attorney to start a legal claim against the insurer and the employer.

If the court determines the worker was eligible according to worker’s compensation laws, the defendant must provide monetary damages to the plaintiff that include economic losses such as lost wages and all medical costs. Some non-economic damages could apply if the worker sustained serious injuries or developed a permanent disability because of the injuries.  

Worker’s compensation insurance provides coverage for injured workers involved in an accident on the job. The policies define the workplace and what activities the workers must be doing at the time of the accident.

The insurance must provide coverage for medical expenses and wage replacement benefits until the employees recover and get back to work. By reviewing the terms of the policies, the business owner finds the best policy for the company’s needs.   

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