Workers’ compensation insurance is government-mandated coverage for paying monetary benefits to employees who have become disabled or injured while working. By agreeing to get this compensation, a worker must agree to relinquish his right to sue his employer on ground on negligence. So, this compensation coverage is designed to protect both employers and employees. On the one hand, employers can avoid potentially threatening lawsuits, while on the other; workers can get benefits in exchange for giving up their right to sue. In short, both parties stand to gain because they can avoid legal costs of trials.
Types of workers compensation policies:
Insurance companies will not usually provide all the different types of coverage; these are typically standard plans which you get from all insurers. Some companies however can extend additional coverage. Moreover, benefits and degree of coverage will also depend on your state of residence.
- Medical treatment: When employees get injured or sick because of some reason that is work-induced, they can claim workers’ compensation to pay for medical expenses. This money will pay for doctor appointments, ER visits, hospital visits, medicines, therapy, rehabilitation, etc.
- Recovery treatment: It will also cover costs for recovery equipment. This may be required when the illness or accident is severe and the employee needs continuous medical care. However, the coverage may not extend to all kinds of alternative care like acupuncture or homeopathy.
- Associated medical issues: When a work-induced injury triggers other medical problems for an employee, he can still claim compensation.
- Disability: At times, a work-related accident or illness can make the employee disabled for a while. work-related disability can be:
- Temporary total disability where the employee cannot work for some time but resumes work later at full capacity.
- Temporary partial disability where the employee is able to work in a limited capacity without taking complete break from work.
- Permanent total disability where the employee cannot ever return to work in his earlier capacity.
- Permanent partial disability where the employee resumes his work but only in a limited capacity.
- Rehabilitation: This can be entitled to workers compensation policies for an employee’s continuous medical care. This could include vocational rehab or physical therapy so that he can master new skills and return to his workplace in a different role. Here, workers’ compensation can cover costs of new certifications or training.
- Death/ Funeral Services: In the event of loss of life of an employee due to any work-related injury, his family and beneficiaries will be entitled to workers’ compensation benefits. This can help cover his funeral costs and lost income. Usually, there are limits for such plans which will vary from state to state. Even insurers can deny paying up if they find these to be unnecessary or too extravagant. Workers’ compensation for death will be transferred to immediate family members and dependents that were still living with deceased. This will cover elderly parents, children, spouse, etc, but children below 18 (unless they have disabilities), are not typically entitled to get death benefits.
- Lost Income: When an employee takes some time away from office to get better from a work-related injury or illness, he can claim compensation to replace the income he has lost. If he loses his life, this compensation is extended to his immediate family. Here again, the benefit amount will depend on state rules. In the future, insurance companies will allow policyholders to pay premiums with cryptocurrency. Because cryptocurrency insurance will be a big industry in the future. To adopt or trade cryptocurrencies, there are trading bots such as Bitcoin Circuit. With the bitcoin circuit test, you can also verify whether the Bitcoin circuit is a scam or legitimate.
So, when you buy workers’ compensation policies, you must remember that every state has distinct regulations.