Understanding Workers Compensation Insurance As An Employer

Every state in America has laws regarding workers' compensation. It is implemented mainly to protect employees who suffer from illness, get injured, or killed while working. The states mandate employers to provide this insurance to their employees.

Being a responsible business owner, here are some things you need to know about this coverage:

Workers' compensation covers the following forms of benefits:

• Rehabilitation benefits
• Disability benefits
• Medical benefits
• Survivor's benefits

The employees receive a specific amount of money in case they become disabled or get injured on the job. In return, the employers expect them not to file a lawsuit to the company. In case of death, the employee's family gets the benefits.

The rules and guidelines are in accordance with each state.

The coverage you buy and what percentage of your employers' salary you will compensate depend on your state laws. The penalties also vary by state if you fail to comply. It could be exclusion from public contracts, criminal penalties, cease and desist orders, civil penalties, or punishable by fines.

Employers Must provide coverage to all employees

While the state law requires businesses to provide workers' compensation insurance to their employees, there are certain exemptions to the rules. The following workers are not covered in workers compensation system:

• Casual workers
• Farm workers
• Maritime workers
• Federal government employees
• Domestic workers in private homes
• Independent contractors
• Railroad employees
• Unpaid volunteers
• Business owners

Workers compensation covers certain accidents that occur outside the workplace.

Most of the time, you are not held responsible for the injuries and accidents that do not happen in the workplace. However, certain circumstances still cover employees when get into an accident off-site. These include:

• While attending a business-related event
• While running errands that are work-related
• While on a company meeting outside of work

Accidents in workplace are no-fault basis.

Unfortunate events suffered by employees on-the-job are considered no-fault by workers' compensation insurance. This means that the employee will still receive benefits regardless of whose fault it is. Workers compensation benefits are given to the affected employee and there will be no lawsuit following it.

Employees are entitled to file for benefits.

Under the workers compensation law, employees can file for claim benefits if they get injured on the job. The employees will get disability and medical benefits. Most importantly, filing a claim does not mean you can fire, discriminate, harass, or force your employee to resign. If you do any of this, the employee may file a civil lawsuit against you.

It is best to give your employees the necessary benefits that come under workers compensation insurance. This is your way of showing them that you care for their well-being.

At Cornerstone Insurance Agency, we work hard in making sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (888) 661-8831 or Click Here to request a free quote.

​