Do you have a work-related injury or know someone who does? You should keep on reading to find out about what workers’ compensation is and how it can benefit you.
What Is Workers Compensation?
Did you know that before workers’ compensation requirements were enacted employees had to take legal action against their employers to get any compensation for work-related injuries? This created a challenge for maintaining balance within organizations. As a result, many employees ended up being shortchanged from obtaining any benefits. However, it helped to develop a system that ensures that employers face penalties should they avoid paying compensation to their employees.
Nowadays, this system that is regulated by important state laws provides comprehensive benefits to employees who may suffer a work-related injury. These benefits can be medical expenses, monetary compensation, or vocational rehabilitation. The types of benefits that you can obtain as an employee differ due to different factors. For instance, the state requirements may differ or the size of the organization may have an influence on these benefits.
Most states require an employer to purchase insurance coverage for their employees. If you are an employee, this type of coverage should protect you should you have a work-related injury. However, there are businesses that are exempt from providing this type of insurance. It is important to research if your industry falls under these exemptions or not. Moreover, there are limits on the maximum liability coverage that your employer can take out for each employee. This means that should your claim exceed this amount, you might need to find the money to cover the costs from personal savings or other (legal) means.
What Are The Advantages of Workers Compensation?
There are legally prescribed benefits that workers’ compensation coverage should provide to you as an employee. The following are the four types of benefits that are common in all states.
1. Medical Coverage
This is the most common type of benefit that injured employees receive. It should cover all of your expenses such as medical exams and equipment that may be required. For instance, if you are injured and reach a point of maximum medical improvement, your treating doctor should be able to help determine your impairment income benefits. While this coverage is common in all states, you should note that treatments are not covered the same way. What is covered in your state may not be covered in another.
2. Disability
Should you be disabled due to a work-related injury you would be able to claim a portion of your wages from your employer. The amount should be determined by the type of disability as classified by law. Disability coverage amounts vary from state to state. Moreover, there are thresholds on the maximum amount that is payable by your employer.
3. Rehabilitation
If your work-related injury forces you to require physical or psychological rehabilitation, your workers’ compensation insurance should cover your expenses.
4. Death
Should you die due to a work-related injury, your employer should provide coverage that allows your beneficiaries to acquire benefits such as maintenance and burial costs.
What Are The Risks of Not Having Workers Compensation?
The most obvious risk of not having workers’ compensation is the penalties that may arise. Business owners who are not exempt from paying this insurance face costly legal lawsuits if they fail to provide this coverage. Additionally, they face the risk of paying out-of-pocket for the medical expenses of their employees. According to research by the Bureau of Labor Statistics, when employers do not provide insurance it lowers employee morale.
In summary, workers’ compensation is essential to run a business. Finding ways to boost employee morale is important. Moreover, it helps to avoid any risks that can have legal consequences should your business fail to provide this type of insurance.