The Basics Of Workers Compensation InsuranceMay 13, 2015 No Comments
In the USA, if an employee is injured on the job, the injured employee will automatically receive pre-defined benefits that will pay for: medical bills, lost wages, permanent disabilities, and death benefits. Employers are required to carry workers compensation (WC) insurance to cover these expenses. The Insurance Information Institute has a detailed primer on WC that can be viewed here. This overview addresses questions like:
- What is work comp insurance?
- What injuries are covered?
- What benefits do injured workers receive?
- Do I have to buy work comp insurance?
- How are premiums determined?
- Can an employee who has an accident sue me?
- Does work comp insurance cover travel?
- What factors affect my premiums?
- How can “second injury funds” limit my costs?
Workers compensation insurance benefits are state specific. Here’s a link to a chart that compares WC benefits from state to state. WC costs are a significant cost of doing business. When companies are considering re-location, one of the factors usually evaluated is the level of WC benefits in the various states being considered for the new location .