Workers compensation insurance is essential, for providing benefits to employees who suffer from job related injuries or illnesses. These benefits include treatment, ongoing care, wage replacement and even death benefits.
In several states, it is mandatory for businesses to obtain workers compensation insurance for their employees regardless of the number of employees they have.
Worker’s Compensation Insurance- Facts
What exactly is worker’s compensation insurance? It's an insurance coverage that offers compensation for lost wages and medical expenses to individuals who get injured or become ill as a result of their work. The cost of worker’s comp coverage is typically borne by employers with no contribution required from employees.
How can this Insurance Coverage Benefits Availed?
To receive workers compensation benefits the injury or illness must be confirmed as work related by either the employer or the insurance company. In cases where the claim is denied worker’s compensation judge makes the decision.
Besides covering injuries and rehabilitation costs workers compensation insurance in Broward County can also provide support to families in the event of a work related death.
Facts About Workers Compensation
Some important facts about workers comp include;
- Workers compensation programs were established through state statutes or constitutions starting in 1911.
- Presently, all 50 states along, with Washington D.C offer this facility and have their workers compensation programs.
- All states, except, for Texas and Wyoming have made it mandatory for businesses to have workers compensation insurance coverage.
- Workers such as workers, domestic employees and independent contractors are generally not required to have workers comp insurance.
- According to the data from the National Academy of Social Insurance a total of $58.9 billion was paid in worker’s comp benefits in 2020. This amount represents a 6% decrease compared to the $62.7 billion paid in 2016.
Who Requires Workers Comp Insurance?
Most states mandate that businesses carry workers comp insurance for operations with just one employee. However some states (like Alabama and West Virginia) do not require workers comp if you employ than five individuals.
Certain types of work may exempt businesses from needing workers comp coverage. For instance in California you do not need workers comp insurance for employees who work for parents or for volunteers, at profit recreational camps or ski patrols.
What Does Workers Comp Insurance Include?
Now let’s delve into the benefits provided by workers compensation insurance. Workers compensation provides coverage, for expenses, including hospital visits, medications and emergency surgeries. When an employee needs time off from work to recover from a work related illness or injury their lost wages are partially covered. Disability benefits are also available in the case of permanent disabilities caused by the injury. Workers' compensation covers care costs like therapy as well. In cases of death workers comp typically includes funeral costs and survivor benefits for the workers family.
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