Companies purchase workers’ compensation insurance to protect them from lawsuits and financial losses if their employees are hurt on the job. This insurance also protects workers because it provides financial help to pay for lost wages and medical bills if they experience work-related injuries. If you have questions about workers compensation in a specific state, seek legal counsel, such as an Iowa workers compensation attorney.
Requirements
Although the requirements vary by state, most employers with at least one employee must purchase workers’ compensation insurance. Domestic help, seasonal workers and independent contractors are not typically covered by this insurance. Some states allow larger employers to insure themselves, but they have strict guidelines. In addition, some industries, including construction and agriculture, are not required to provide this insurance.
Coverage
Medical expenses and future care, lost wages and funeral costs are all covered by workers’ compensation insurance. However, this insurance does not cover injuries caused by negligence or intoxication. It also doesn’t cover injuries caused by altercations started by an employee or emotional injuries.
Payment
Workers’ compensation is typically purchased by employers. Workers are not required to pay for these benefits. However, individual state and federal laws vary. In addition, the size of a business and its worker risks and employment type all have an impact on who must purchase workers’ compensation.
Unemployment, Disability and Social Security
Workers’ compensation payments do not negatively impact a worker’s eligibility for unemployment, Social Security or disability. However, the amount individuals receive from one or more of these other services may be impacted by the amount of workers’ compensation they are receiving. Companies’ human resources departments should have information about what benefits are impacted by workers’ compensation claims and how to apply for these benefits.
Workers’ compensation insurance has many benefits for both employers and employees. Be sure to check whether your employer has appropriate insurance and learn the claims process in case of a work-related injury.
