What is Workers Compensation and why do I need it?

Workers Compensation provides you and your employees with important protection. When your employees are taken care of, your business is taken care of. Workers compensation gives you and your employees peace of mind that if an injury did occur on the job, you have a solution to help them on their path to recovery so they can return to work as safely and quickly as possible.

Workers Compensation is a type of insurance that most states are required to carry that pays benefits to an employee injured on the job regardless of negligence on the part of the employer.  It is a type of “no-fault” insurance which means it does not matter if the injury or illness was caused by the employer or the employee.  Fault does not have to be proven in order for the benefits to be paid out.  These benefits are intended to be an employee’s only remedy for claims made against an employer. 

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There are several conditions that the carriers look for in order to pay out workers compensation claims:

  1. From the injured person’s perspective, the injury is accidental
  2. The injury arises out of the individual’s employment
  3. The injury arises in the course of the individual’s employment

The workers compensation benefits include:

  1. Disability benefits, including loss of earnings
  2. Medical benefits for injuries related to work
  3. Benefits to a deceased employee’ survivor, spouse or children
  4. Rehabilitation costs

The following are reasons why you as an employer would want and need to have Workers Compensation insurance.

  1. Your employee is lifting boxes and injures their back.
  2. Your employee slips and falls on the floor and injures their wrist.
  3. Your employee is administering a flu shot and accidentally pricks her finger.
  4. Your employee burns their arm while cooking a dish at the restaurant.
  5. An employee drops an auto part on their foot while working.
  6. Your employee gets carpel tunnel in the course of their employment.

Workers compensation insurance helps you as an employer focus on your business while your employee is provided the necessary care and compensation, while away so that they can return to work. 

Key things to remember about workers compensation:

  • Workers compensation coverage is governed by each state.  It is not a federal requirement.  Each individual state determines its own workers compensation laws. 
  • Workers compensation policy pays what the state statue imposes
  • There is no policy limit for medical benefits.
  • The type and extent of payable benefits depend on the nature of the disability and provisions of the state law that may apply.
  • The policy will only pay the state benefits for the injured employee for the states listed on the information page (think declaration page) of the policy.

Give us a call if you need help with your workers compensation or if you need a quote. We are happy to help!

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Are you ready to save time, aggravation, and money? The team at POM Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!

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