Workers Compensation Insurance

Workers compensation insurance, also called “workers’ comp,” pays for an employee’s medical bills and a portion of their lost wages if they get hurt or sick on the job. Benefits for the employee’s rehabilitation and death are also covered.

What Is Workers’ Compensation?

Workers compensation, which is also called “workers comp,” is a government-mandated program that helps workers who get hurt or sick on the job or because of it. It’s basically an insurance program for workers who get hurt or sick on the job. Workers who get hurt or sick on the job get cash benefits, health care benefits, or both.

Understanding Workers’ Compensation

Some workers’ compensation benefits may cover a portion of the employee’s lost wages while they can’t work. There may also be reimbursement for medical services and occupational therapy as part of the benefits.

Most workers’ compensation programs are paid for by private insurers, with money from the premiums that each employer pays. Each state has a Workers’ Compensation Board, which is a state agency that runs the program and steps in when there are disagreements.

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There are federal workers’ compensation programs for federal employees, people who work on the water or in ports, and people who work in the energy industry. The Black Lung Program is another federal program that helps coal miners and their families get benefits if they die or become disabled.

Workers’ Compensation Benefits

If your employee suffers a work-related injury or illness, workers’ compensation benefits can help cover their:

These workers comp benefits aren’t available if your employee gets hurt or sick outside of work. Benefits may also not be available for intoxicated employees that get into an accident, or employees that intentionally hurt themselves.

Workers' Compensation Benefits

Medical Expenses

Workers compensation insurance helps pay for your employee’s medical bills if he or she gets hurt or sick at work. This can include trips to the emergency room, surgeries that are necessary, and prescriptions. For example, if one of your electricians cuts their hand at a customer’s house, workers’ compensation insurance can help pay for their trip to the hospital.

Missed Wages 

Workers compensation helps make up for some of your employee’s lost wages if they need time off to recover from an injury or illness that happened at work. So, if your restaurant’s chef spills a pot of boiling water on her arm and can’t work for two weeks, workers’ compensation can help replace some of her lost wages.

Ongoing Care

Workers compensation helps make up for some of your employee’s lost wages if they need time off to recover from an injury or illness that happened at work. So, if your restaurant’s chef spills a pot of boiling water on her arm and can’t work for two weeks, workers’ compensation can help replace some of her lost wages.

Funeral Costs

Workers compensation helps make up for some of your employee’s lost wages if they need time off to recover from an injury or illness that happened at work. So, if your restaurant’s chef spills a pot of boiling water on her arm and can’t work for two weeks, workers’ compensation can help replace some of her lost wages.

How Much Does Workers’ Compensation Cost?

The cost of workers’ comp insurance and the benefits that are required by law vary from state to state. There are also different rates for employees with low-risk jobs and those with high-risk jobs.

The insurance costs are based on how much the company pays its employees. To give some examples:

  • In California, workers compensation costs an average of 40 cents per $100 paid to low-risk workers and $33.57 per $100 paid to high-risk workers.
  • In Florida, low-risk jobs pay an average of 26 cents per $100, while high-risk jobs pay an average of $19.40.
  • In New York, low-risk jobs pay an average of 7 cents per $100, while high-risk jobs pay an average of $29.93 per $100.

Final Words

Most states have websites that can help you find out if you are covered by workers’ compensation insurance. For instance, the Division of Workers Compensation for the state of Florida has information about its program, links to the necessary forms, and a database that can tell you if your employer has coverage.

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