Workers' compensation insurance is a very important type of insurance coverage for employers. Having workers' compensation insurance can benefit both the employer and the employee. If an employer does not have workers' compensation, they may have to cover any cost incurred out of their own pocket.
What Is Workers' Compensation Insurance?
Workers' compensation insurance is a type of insurance that employers carry to protect themselves and their employees.
Workers' compensation insurance can cover things like:
- Medical bills
- Lost wages
- Disability benefits
- Funeral costs
- Repetitive injuries
Workers' compensation insurance will cover an employee in the event of an injury or illness. Workers' compensation can also pay disability benefits if it is determined the disability was the result of a work-related incident. If an employee dies while on the job, workers' compensation can also provide death benefits and/or cover funeral costs.
What if You Are Not at the Jobsite When You Are Injured?
Workers' compensation benefits do not end when you step off the premises. If you are injured when you are running errands for work, or out making a delivery, you are still eligible for workers' compensation benefits because you were still on the job.
What Is NOT Covered Under Workers' Compensation Insurance?
Workers' compensation can help in many cases, but not all.
Workers' compensation insurance will not cover any of the following incidents:
- Injuries caused by a drunk employee
- Injuries caused intentionally
- Emotional damage
- Injuries caused by a physical fight the employee started
- Any injuries that happen during an employee's commute
- Injuries caused during an illegal activity at work
If it is determined that you were injured in the above ways, you will not receive workers' compensation benefits and will be required to cover all the costs yourself.
Is Workers' Compensation Insurance Required?
Workers' compensation insurance is required by law in most states. This helps ensure the injured employee can receive the compensation and assistance that they need. This can also protect the employer from having to cover any costs on their own.
Can You Sue Your Employer if You Receive Workers' Compensation Benefits?
Because workers' compensation insurance is built on a no-fault system, you cannot sue your employer if you take the workers' compensation benefits. If for some reason you believe that the work-related incident calls for something more than monetary reimbursement, you will not be able to accept the benefits if you plan to sue.
Do You Have to Contribute to Workers' Compensation Insurance as an Employee?
The cost of workers' compensation insurance is solely the responsibility of the employer. In most states, the employer is not allowed to require or request the employee to contribute to the cost of the insurance.
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