Workers compensation laws ensure that employees who incur an injury on the job are provided with fixed monetary awards. This eliminates the need for litigation and creates an easier process for the employee. Additionally, it helps control the financial risks for employers. Today, many states limit the amount an injured employee can recover from an employer.

Workers Compensation Insurance (Workers Comp) helps companies pay these benefits. As a protection for employees, most states require that employers carry some form of Workers Comp. Workers Compensation Insurance is not health insurance. Workers Comp is specifically for sustaining injuries on the job.

Do I need workers compensation insurance?

Employers have a legal responsibility to make the workplace safe. However, accidents happen, even when every reasonable safety measure has been taken.

Businesses in almost every state require Workers Compensation insurance. Whether it’s protecting employers from lawsuits that result from workplace accidents or providing medical care and compensation for lost income to employees hurt in workplace accidents. Workers Comp covers workers injuries on the job, whether hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.

Workers Compensation provides payments to injured workers without regard to who is at fault in an accident. This includes time lost from work, along with medical and rehabilitation services. It also provides death benefits to surviving spouses and dependents.

Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services, and how to administer the system. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries, and how disputes about benefits are resolved.

Workers compensation insurance requires a separate policy. Although in-home business and business owner’s policies (BOPs) sell as package policies, they don’t include coverage for workers’ injuries.

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