Providing workers’ compensation benefits is an essential part of owning a business. As a business owner, your responsibilities include providing for the needs of your employees and ensuring their well-being.
Programs such as WI workers’ compensation can help you do just that, but it can be confusing to understand the legal obligations that these plans entail. Whether you run a small or large business, the effort and expense of meeting the requirements pose a constant challenge.
To help business owners and workers, we’ve gathered together the most commonly asked questions about workers’ compensation.
10 questions on workers’ compensation answered
- What is workers’ compensation?
Workers’ compensation insurance (also known as workman’s comp and worker’s comp) helps protect businesses and employees from financial loss. These insurance plans typically cover employee injury or illness resulting from a work-related incident.
Workers’ compensation protects the operations and assets of businesses as well. By providing workers’ comp, companies could be spared from costly lawsuits.
- What does workers’ compensation cover?
Workers’ compensation insurance typically covers medical fees, lost wages, continuing care expenses, and funeral charges if an employee dies due to a work-related accident or disease.
- What is not covered by workers’ comp?
In the event of a covered loss, workers’ compensation insurance can still provide coverage but with some limitations. These may vary depending on the state and is typically determined by the relevant state laws.
Workers’ compensation may not cover injuries in the following cases:
- The employee provoked a fight
- The worker is intoxicated in the workplace during the incident
- Physical trauma in the workplace did not cause any emotional effects
- Who funds workers’ compensation?
In most states, companies are required to provide workers’ compensation insurance. In Texas and New Jersey, coverage is optional.
The coverage cost varies according to several factors, including:
- State laws
- Business size
- Nature of the work
- On-the-job hazards
- What if an employee is injured on the job site?
It is necessary to report the injury to the supervisor immediately so that the proper report can be made. The statement should include the date and time of the incident and other details relevant to the incident.
Each state has different requirements when reporting incidents. Even so, it is always necessary to records the details of the event promptly.
With job-related diseases that worsen over time, employees should notify their employers as soon as the diagnosis is available. This is especially crucial when the injury or illness is confirmed to be related to the work.
- How does an employee file a workers’ compensation claim?
Employees may file for workers’ compensation claim if:
- They are employed by the company
- The job caused the illness or condition
- The tasks at work resulted in the injury
- The injury occurred in the workplace
For their part, employers must ensure that the worker gets the proper treatment immediately. And if their recovery requires time off from work, employers must grant their appeal.
Of course, it is necessary to gather crucial information, such as:
- Business information such as account number, location, and policy number
- The injured employee’s information, including full name, date of birth, age, gender, complete address, contact number, and Social Security number
- Incident details such as the date of the event, type of injury obtained, the injured body part, the cause of injury, expected loss days of the employee and return date, and witness details
Once the information has been consolidated, the claim should be filed with the insurance provider as soon as possible.
- How does workers’ compensation insurance work?
Workers’ insurance coverage provides access to professional care throughout the recovery process. Among the key benefits are:
- Option to choose a medical provider. Employees can select from more than one million providers nationwide.
- Guaranteed aid during treatment and recovery. Nurse case administrators are available to assist in care and treatment.
- Convenient prescription drug features. Claimants can fill their prescriptions in more than 65,000 pharmacies without incurring out-of-pocket expenses.
- Is an employee still eligible for disability, unemployment, or social security benefits after receiving workers’ compensation?
Yes. However, the number of anticipated benefits under other programs may affect the workers’ compensation. To determine employee eligibility, you may contact the benefit officer of your company to learn more about unemployment insurance benefits and qualifications for long-term disability.
- Should you have workers’ compensation insurance?
Technically, any employer with more than one worker must provide workers’ compensation insurance. However, not all workers are covered by this type of insurance, among them:
- Independent contractors
- Domestic workers in private homes and volunteers
- Seasonal workers
- Employees of agricultural firms, construction businesses, and charities
- How do I get workers’ compensation insurance?
Employers can avail of workers’ compensation via the following:
- An insurance agent
- An insurance provider’s website
- A state-funded programs
Remember that the requirements vary from state to state. Furthermore, some insurance carriers offer policies only through agents and not directly to business owners.
Employers should provide the following details when applying for workers’ compensation:
- Number of workers who need coverage
- Number of employees
- The nature of their employees’ work
- The payroll size
Getting workers’ compensation may seem like it entails unnecessary effort and expense. But offering the appropriate coverage can benefit your business in many ways. With the right compensation plan, you can protect your business interests and ensure your workers’ well-being.
Rodrian Insurance
Rodrian Insurance specializes in giving you insurance solutions that perfectly match your business and personal life. We provide insurance options that offer excellent coverage while remaining within your budget, based on a thorough understanding and assessment of your needs, circumstances, and financial capability. Find out more about how Rodrian Insurance can fulfill your insurance needs. Call or text us at (262) 352-4741 or email us at info@rodrian.com.
