Workers compensation insurance provides wage replacement and medical benefits to employees that are injured in the course of employment in exchange of mandatory relinquishment of employee rights.
It is a legal and ethical responsibility that all employers make their work place a safe one. As safe as a workplace can be, accidents can and still do occur, even if several safety measures have been taken. Workers compensation insurance will protect employers from lawsuits resulting from workplace or work-related accidents or illnesses. Workers Compensation insurance also provides medical care and compensation for lost income to the employee(s) injured in workplace accidents, or hurt in places other than workplace while on the job.
Payment to employee includes:
- Time for loss of work
- Medical and rehabilitation services
- Death benefits to surviving spouses and dependents
Nearly ALL states require workers compensation insurance. Different state laws each govern the amount and duration of lost income benefits, the provision of medial and rehabilitation services, as well as how the system is administered.
As a general rule of thumb, worker’s compensation insurance must be purchased as a separate policy. There are several types of commercial/contractors insurance that are sold as package policies, but they typically do not include coverage from employee’ s injuries.