Business owners rely on their employees to keep things functioning smoothly. Keeping employee morale high is a priority. Workers' compensation insurance helps protect employees while also protecting the business from a major lawsuit if something goes south. Here is a look at the significant parts of workers' compensation policies.
Why Is Workers Compensation Insurance Important?
Nearly every state requires business owners to purchase workers' compensation insurance for their employees. Workers' compensation policies provide benefits to employees injured on the job. The policy differs from health insurance because employees are only eligible for the benefits if they get sick or are injured at work. If you are a business owner, you are likely looking for affordable workers' comp insurance. To fully protect your business, it's recommended that the policy contain disability, death, medical, and rehabilitation benefits.
Disability Benefits
If you are injured on the job, workers' compensation covers your medical treatment. You are also eligible for disability benefits if you suffer a significant injury that leaves you unable to work for an extended period. Disability benefits can help you recoup lost earnings while you cannot work. Your wage replacement will likely be based on your weekly pay before suffering an injury. Other variables include state regulations and the type of disability you are classified as. If you have suffered a permanent disability, you will be covered long-term. However, some states limit disability benefits to a specific dollar amount or until you reach an age threshold. Another variable to consider is a temporary partial disability. Temporary partial disability means that you can still perform tasks on a limited schedule.
Death Benefits
In the unfortunate event that you pass away on the job, workers' compensation death benefits are similar to life insurance policies. Your dependents would receive benefits to help cover any burial costs and future expenses. Also, be aware that death benefits are payable for years after you sustained the injury on the job.
Medical Benefits
You are responsible for reporting the injury that you sustained on the job. Your employer will file the workers' compensation claim. Once the claim is approved, the insurance company will cover all of your medical treatment. Any emergency and doctor's visits, physical therapy, and prescriptions are covered under the policy. Generally, medical benefits are exempt from co-pays and deductibles. However, some states may limit the available treatment options. All of your expenses are covered until you reach Maximum Medical Improvement. At that point, you may be eligible to return to work with restrictions. Coverage may also stop if you have reached a point where additional treatment won't improve your condition.
Rehabilitation Benefits
Rehabilitation benefits support you if you are unable to return to your position. Many policies contain supplemental job displacement. These benefits cover you if you need resume assistance or are planning to head back to school but you need assistance with tuition. Rehabilitation benefits cover any expenses associated with retraining. You'll receive assistance as you acquire new skills to move into a different career path.
Things to Consider
You are eligible for workers' compensation benefits even if you accidentally injure yourself on the job. Your employer benefits from this no-fault system because you are generally unable to sue due to receiving benefits through workers' compensation. There are a few exemptions when your injury is not covered through workers' compensation, such as working under the influence of drugs or failing to wear the proper safety equipment.
Consult with United Direct Insurance
Adding affordable workers comp insurance is an asset for everyone involved in the company. As a business owner, you would avoid a potential lawsuit, and your employees will receive the necessary benefits to stay afloat while undergoing treatment. If you have any questions about the policy, contact us today. Our team of expert agents here at United Direct Insurance will assist you in resolving all your issues.
