Workers’ compensation is an employer’s protection from a lawsuit in the event of an employee’s injury or death at the workplace. It is often referred to as “workers comp,” and every state has made it mandatory to provide this insurance program to employers. The insurance serves both the employee as well as employer; it assures injured employees that they will receive the compensation and medical care needed until they are able to go back to work. This also protects employers from a lawsuit when an employee is injured on the job. Every state has its own regulations for the program, and while some have a federal insurance plan, some businesses choose private insurers.
What Benefits An Employee Will Receive
In most cases an employee will receive benefits whether the disability is permanent or temporary. Some states will allow the employee to be compensated for the time out of work, while others specify a maximum number of weeks for temporary disabilities.
An injured employee will receive:
- Medical Care
- Replaced Income
- Retraining Costs, if necessary
Also, if killed on the job, then eligible dependents will receive workers’ compensation for generally 500 weeks at the wage of the deceased employee.
Benefits For Your Business:
- Protection from the lawsuit or large financial loss
- Coverage for legal costs
- Coverage for certain types of illnesses and injuries
- Coverage for funeral expenses and dependent support