Worker’s compensation requirements vary by location, but most states require companies to provide employees with this form of coverage. However, purchasing this coverage shouldn’t be viewed as just one more to-do to tick off. Employers and employees alike should understand how it works and what is and isn’t covered. It’s also important for business owners to understand the many benefits of providing top-tier workers’ comp coverage to their staff members.
What is Worker’s Compensation and What Does it Cover?
Worker’s compensation is designed to cover costs related to an on-the-job injury. The largest of these costs is medical expenses. Worker’s compensation insurance covers the cost of all medical treatment an employee will need after an on-the-job injury. This includes the costs of an operation, hospital stay, and subsequent doctor visits. It also covers therapy and lost wages for those who can’t work for a period of time.
If the injury is severe, the employee may have to change jobs or even stop working. In such cases, worker’s comp insurance covers disability benefits. If an employee dies because of an on-the-job injury, the insurance policy will cover funeral costs and survivor benefits for the employee’s family.
Most policies provide no-fault coverage. This means that employees receive compensation even if they are partly at fault for the injury. For instance, an employee who has a slip-and-fall accident will receive coverage even if there was a “wet floor” sign put up. Worker’s compensation insurance also covers accidents caused by another employee’s mistakes or carelessness.
What Isn’t Covered by Worker’s Compensation?
Worker’s compensation won’t cover accidents caused by an employee’s failure to follow company rules and safety policies. For example, if a company requires workers to wear protective gear and a worker refuses to do so, he or she can’t claim compensation due to an injury that wouldn’t have happened had the worker worn the protective gear.
Injured employees should also bear in mind that there are legal limitations on when a person can claim worker’s compensation. The statute of limitations can vary by state, but in most places it is two years from the date of injury. Workers (or family members of a deceased worker) can’t file a claim after this date.
Furthermore, business owners aren’t required to approve all compensation claims. A company can deny a claim if the injured worker didn’t see a doctor approved by the insurance company. Businesses can also deny a claim if there is evidence the injury didn’t happen at work, isn’t as serious as the employee claims, and/or the employee had a pre-existing condition that contributed to the severity of the injury. However, denial of coverage will likely trigger a lawsuit. A company should have strong evidence for denying a claim and be prepared to cover legal expenses if the case goes to court.
What’s in it for the Business Owner?
Worker’s compensation isn’t just an employee benefit. It also benefits business owners. Even companies that aren’t legally required to obtain this type of insurance may want to consider doing so.
Worker’s comp insurance protects a business from lawsuits that can arise if an employee sustains an on-the-job injury. If an employee claims compensation and the claim is granted, he or she can’t sue the employer. This not only protects a business from legal costs but also bad publicity that could ruin trust in a local business.
A good worker’s compensation policy also boosts employee morale. Employees who know that a business owner has their back if they get hurt on the job will likely be more productive than employees who know they will struggle financially if they get hurt while working. A good policy can also attract new employees to industries that often struggle to find qualified workers. This is a huge plus in the current job environment. The current worker shortage is making it hard for many companies to operate properly. Anything that can be done to keep employees happy and bring in new employees as needed is an investment in the company’s long-term success.
How to Find a Good Worker’s Compensation Policy
Worker’s compensation insurance should be purchased from a reliable insurer. Such an insurer will have a high customer review rating, a strong financial foundation, and a history of paying claims in a timely manner. That is why companies from multiple industries are choosing to purchase worker’s compensation insurance from Grand Mutual. Grand Mutual provides flexible coverage to meet the needs of any business or industry. It provides fast, efficient help to any business facing an insurance claim. All claims are processed quickly to avoid delays in receiving needed medical treatment and care. If you are looking for business insurance that meets your needs without stretching your budget, get in touch with us to learn more about our policies.
Have questions? Our team at GMIS is here to help.
At Grand Mutual Insurance Services, we are committed to providing you with the most up to date information and guidance on the insurance market in California. Your peace of mind is our top priority. We understand the importance of reliable insurance protection and are here to support you through these challenging times.
As always, if you have any questions or concerns, please do not hesitate to reach out to our team. We are always happy to hear from you and assist you in any way we can.