Workers' Compensation
Risk Management
Our team of experts is dedicated to providing you with a comprehensive assessment of your risks and quote comparison from our broad network of insurers while ensuring that you have the essential knowledge to make informed decisions on Workers' Compensation insurance.
The Basics of Workers' Compensation Insurance
Workers' Compensation Insurance is a form of employer insurance coverage that ensures employees injured or disabled at work get compensation for an income portion they lose while recovering from their injuries. Workers' Comp also helps employees with medical treatments due to workplace injury. Additionally, Workers' Compensation Insurance can help defend employers from lawsuits by injured employees while at work.
Workers' Compensation Insurance is essential to any organization because this coverage can help to protect both employees and employers in the event of a work-related injury or illness. In addition, for severe cases when a death is involved due to a work-related cause, Workers' comp insurance offers death benefits to the employee's dependents.
State governments typically administer workers' compensation, and it is generally mandatory for employers to provide coverage for their employees. Multiple states in the U.S. exempt employers with a few workers from compulsory insurance coverage laws, with three to five employees generally being the threshold of employees that trigger mandatory insurance. Although the specifics of workers' compensation programs vary from state to state, the overall goal is to provide financial protection for workers who are injured or become ill due to their job. Even if coverage is not mandatory in your state, having Workers' Compensation Insurance is vital to employers to help ensure financial stability and the safety of their employees.
Key Coverage Provisions
As an employer, if an employee suffers work-related illnesses or injuries, your Workers' Compensation Insurance can help you with the following:
-
Workers' Compensation Insurance can help cover the costs of emergency room visits, prescriptions, necessary surgeries, and other medical expenses.
-
After a work-related injury or illness, Workers' Compensation Insurance helps reimburse some of the worker's lost income for the period they can't work.
-
If your employee suffers a severe work-related illness or injury, Workers' Compensation Insurance can help cover the employee's physical therapy and other ongoing care costs.
-
Workers' Compensation Insurance can also offer permanent disability benefits.
-
Workers' Compensation Insurance also provides Supplemental Job Displacement benefits if the staff member doesn't recover completely.
-
In an unfortunate event where one of your staff members passes away due to a work-related incident, Workers' Compensation Insurance can help pay for their funeral costs. Workers' Comp can also offer death benefits to the employee's beneficiaries.
What’s Typically Not Covered?
While Workers' Compensation Insurance covers most accidents and incidents occurring in the employment scope and course, the coverage would not cover some injured employee claims, such as the ones listed below:
-
For employees who sustain injury while under the influence, and investigations show that the intoxication is solely responsible for their injury, Workers' Compensation Insurance will not cover the injury.
-
Your employee might sustain injuries while commuting to or from the workplace. In most cases, Workers' Compensation Insurance doesn't cover such injuries as they don't fall within their employment scope and course unless the employee has expressed permission from the employer.
-
If a worker purposely leads to their workplace illnesses or injuries accident, they will not be covered under the company's Workers' Compensation Insurance.
-
Also, Workers' Compensation Insurance usually doesn't cover staff members injured while violating the business' procedures, protocols, and policies.
-
Additionally, your company's Workers' Compensation Insurance will not cover employee injuries resulting from illegal activities at work.
-
Usually, terminated or laid-off employees are no longer under your company's Workers' Compensation Insurance policy, meaning they will no longer be covered. However, an exception is where the suffered injury predated the worker's termination.
Discover New Capabilities
CPK Insurance Services connects leaders with top-tier insurance carriers and provides a broad range of risk solutions to help all organizations of all sizes mitigate their risks.
