A responsible employer will do all they can to create the best achievable work environment for their employees. However, even with the most elite safety precautions, accidents are still bound to happen. So, how do you extend protection to your employees even after such accidents?
Workers’ compensation insurance protects an employer and their employees in the event of any work-related injuries or mishaps. But to maximize the perks of workers’ compensation insurance coverage, you need to know a few key points.
Here’s some information all employers should know about the cover.
How Does Workers’ Compensation Cover Work For Employers?
A workers’ compensation cover protects an employer from having to foot medical bills and other benefits to employees in case of a work-related accident. It protects your employees and their families from paying the bills for such accidents and extends its cover to lost wages.
An employer pays for the workers’ compensation for each employee on their payroll. If an employee dies, gets injured, or becomes ill on the job, the benefits are awarded to the employee or their family. The benefits cover expenses like lost wages and medical care.
Aside from a few exemptions that depend on the state, the cover is typically designed to ensure that once workers accept the benefits, they won’t sue their employer for damages.
Classifications of The Workers’ Compensation Benefits
The type of accidents and injuries covered depends on the individual cover taken by the employers. The five primary benefits of workers’ compensation include:
- Temporary disability benefits
- Permanent disability benefits
- Death benefits
- Medical care benefits
- Supplemental job displacement benefits
However, some injuries, such as intentional acts and repetitive mental trauma, are not covered. The cover also will not extend to injuries suffered while an employee committed a crime or participated in activities violating written policies.
Employers can be sued by their employees if they have not taken all the necessary precautions in the workplace to protect their employees or if an employer has wrongfully denied an employee’s workers’ compensation claim.
Employer Obligations For A Workers’ Compensation Cover
An employer is obligated to communicate the compensation policy to the employees. They are also required to provide the procedure for filling a claim, a list of the approved healthcare providers or facilities that will handle an employee’s claim in good faith, and cover all the benefits shared.
However, an employer’s requirements and obligations will vary from state to state. Some require you to display posters of the procedures, and others have a time limitation on how soon you should attend to a claim. In contrast, others provide reasonable accommodations for employers to process claims. Always check your state laws for direction.
Invest In Financial Protection
Workers’ Compensation insurance is a financial shield that protects an employer from the potential financial frustration when sued by an employee or employees for compensation. Accidents can happen anytime, but the possible damages from medical costs to death can financially impair and even cripple a company. Protect you and your employees by investing in a workers’ compensation cover.
