Worker’s compensation works to provide security for both the employer and employee, and it’s mandatory for this reason. With the average claim costing about $40,000, it only makes sense that employers want to protect themselves. Not many small businesses can afford a surprise payment of that size. However, did you know this policy type has more than just one part?
Broken down, this is the overview:
- Medical expenses
- Disability
- Rehabilitation
- Death
Medical Expenses
This is the most common type that worker’s comp covers. Employees are injured every day, and the result is a pile of hospital bills. To ensure your business minimizes unexpected financial burdens, you’re going to want a policy robust enough to cover your staff. For group health assistance in these cases, we have help for you over here.
To expand further, this part covers any occupational injury or illness, meaning if someone is injured or contracts a disease on the job, then they’ll have access to this policy’s financial help. Expenses paid for include:
- Doctor’s visits
- Medications
- Diagnostic tests
- Medical equipment for recovery (i.e. wheelchairs)
While there aren’t any limits to the amount of money that can be spent, the states do impose restrictions on the types of treatment. For example, an employee is injured on a construction worksite and requires physical therapy to recover. This coverage will help them until they are ready to work again, but there is a set number of physical therapy visits deemed acceptable by the law. Once that limit is reached, the employee will have to pay their medical bills on their own.
Disability
For the disability section, let’s take the example from earlier. If the construction employee’s leg is broken in an accident, they most likely won’t be able to work until fully recovered. It’s hard to do heavy-walking jobs with a broken leg.
This can take a while, and during this downtime, they’ll need help with lost income. This is what falls under disability. However, this term can be broken down further into four more categories.
- Permanent Total: If the employee is injured and they will never fully recover, then they won’t be able to work for future income. This coverage helps in that case.
- Permanent Partial: If the employee sustained a permanent disability, but it only partially affects their income, then this type comes into play. For example, losing a hand would inhibit someone from working to full capacity, but they can still work.
- Temporary Total: This helps if an employee is completely unable to work while they recover. This would be for the broken leg example.
- Temporary Partial: A worker is disabled, but it is something they can recover while on the job.
Rehabilitation
If something drastic were to happen that prevents your employee from returning to their career (either mental or physical), then the rehabilitation section of worker’s compensation assists.
For example, if an employee sustained a period of hazardous stress, resulting in a complete mental breakdown, then they might not be suited for your type of work. During this time, therapy and rehabilitation can get them back on their feet, but not to return to your company.
In these cases, the disabled worker can access something called Transferable Skills Analysis. This is a program that helps the employee find work again that utilizes their learned skills. A counselor is assigned to their case to help in the job hunt, paid for by the benefits.
Death
In the event of a fatality, benefits are applied to help with the employee’s living relatives. In these unfortunate cases, the coverage is put in place to ease the financial burden of death. These include the costs of burial services and lost income to the families of the deceased.
When you purchase worker’s compensation, it’s good to be aware of your state’s specific requirements and laws. Make sure you’re up to date with the current insurance policies so that if something were to happen, you know exactly what to talk to your employees about.
EZ.Insure understands that businesses need to be informed to make the best choices for their future. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.
