Most business owners do not think about workcomp insurance until an employee gets hurt. And when a claim happens, they are usually not sure how it works. Each state has different workers comp rules, and employers should know what’s covered before an injury happens.
So, first — what is workers’ compensation insurance
It is a state-mandated and regulated system that pays medical bills and lost wages (66 2/3%) to employees injured “during the course and scope of their work” or sustain a work-related disease/illness. Employees receive benefits predicated on the injury/illness category and severity. (Federal employees are subject to different workers’ compensation rules)
Injuries/illnesses that happen during work hours. Injuries inlcude: traveling, running errands, attending business seminars/meetings/etc, repetitive motion action (i.e. carpal tunnel) or unending exposure to harmful chemicals, pollution, etc.
What does workmans comp cover?
– Medical care due to injury/illness
– Replacement Income
– Retraining costs
– Permanent injury Compensation
– Benefits to survivors of workers killed while working
Please note: If an employee collects workerscomp benefits, that employee cannot sue their employer.
Also, work comp does NOT cover pain and suffering.