Workers compensation insurance
Workers compensation insurance-this covers medical expenses, lost wages, and other benefits if an employee is injured or sick on the job.
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All businesses in majority of states have worker’s compensation insurance for it’s workers. Employers pay for worker’s compensation insurance. Though the costs can essentially be passed on to employees in the form of lower wages.
What is workers compensation insurance
Worker’s compensation insurance, is also known as “worker’s comp,” it is a government mandated program that gives benefits to employees who are injured or become ill on the job or as a result of their job.
It is more of a worker’s disability insurance program that provides cash benefits, healthcare benefits, or both to workers who are injured or ill as a direct result of their jobs.
it is primarily handled by each states in the United States as they dim fit. Though the benefit requires differs greatly from state to state.
The only state where employers are not required to carry worker’s compensation insurance is Texas
The compensation benefits of workers may include partial wage replacement for the time the employee is unable to work. Reimbursement for healthcare services and occupational therapy which may also be included in the benefits package.
Majority of worker’s compensation programs are funded by private insurers through premiums paid by individual employers. Each state has a Worker’s Compensation Board, which is a state agency in charge of overseeing the program and mediating disputes.
Benefit of workers compensation insurance
- Salary replacement
The salary replacement being paid to an employee under worker’s compensation insurance is less than the employees full salary. Those that have most generous programs pay approximately two-thirds of the individual’s gross salary
- Healthcare Cost Reimbursement and Survivor Benefits.
This plan only covers only medical expenses incurred as a result of injury or sickness sustained during direct work. It also covers compensation to be paid to an employee if he or she does as a result of work related incident.
- Recipients Waive the Right to Sue
This is a situation where employees give up their right to sue their employer for negligence by agreeing to receive worker’s compensation. This collective bargaining agreement is intended to protect both workers and employers. So in turn the employees forego additional recourse in exchange for guaranteed compensation, while employers accept some liability while avoiding the potentially higher cost of a negligence lawsuit by the employees.
Things covered by workers compensation insurance
- The employee’s medical expenses, such as hospital stays, X-rays, and surgeries.
- When ongoing treatment is required, physical therapy is used.
- Lost wages occur when an employee is absent from work to recover from a work-related injury or illness.
- Funeral expenses if an employee dies as a result of a work-related injury or illness.
Conclusion
this is a type of insurance that provides wage replacement and medical benefits to employees who are injured on the job in exchange for a mandatory waiver of the employee’s right to sue his or her employer for negligence. moreover this helps to checkmate employers in order to avoid over use of an employee since it is mandatory by majority of the states.
