Workers Compensation Insurance Types and Benefits
Workers Compensation Insurance is a state-sponsored program that provides insurance coverage to workers if they get injured at work or contract an illness due to their work. This insurance is paid for by employers and the worker is not required to contribute to the cost of compensation.
If you are a Federal Government worker, then you get paid workers compensation insurance from the federal government and are not eligible to get the state’s workers compensation insurance benefit.
Each state has its own policies with regard to workers compensation insurance. To check your state’s benefits, you can visit the Department of Labor’s website. You will get detailed information with regard to workers compensation insurance policies specific to your state. It is to your benefit to understand exactly what you will get from your workers compensation insurance package.
Compensation Bargain and Claims
A condition to receiving workers compensation insurance is that you cannot sue your employer for injuries or illnesses received at the workplace if you want to get workers compensation benefits. This is called “compensation bargain”. The employer makes sure you are compensated for your injuries/illness via workers compensation insurance and you give up your right to sue your employer.
If however, you wish to sue your employer, then you will give up your right to workers compensation insurance.
Additionally, just because you have workers compensation insurance doesn’t mean that you will automatically get it in case you get injured or contract an illness at work. Your employer or the insurance company has to agree that the injury or illness was caused by the work you were doing. You claim will be reviewed and only have the claim is approved will you receive workers compensation insurance benefits.
If your claim is denied, no cash benefits will be paid out to the worker until the workers compensation law judge decides the case. During this time that the employer or the insurer is disputing the injury/illness, the worker may be eligible for disability benefits. However, all payments made under the disability benefits will be removed from your final workers insurance benefit amount.
It is important to remember that workers insurance benefits are capped by law. This means that there is a limit to the amount of payment a worker will receive. As the worker heals, the payment amount will decrease until the worker is finally able to resume work.
Types of Injuries and Illnesses
Compensation insurance usually covers all injuries caused due to the performance of duties, on site as well as offsite.
Injuries caused due to misconduct, alcohol or drug abuse, outside work or “Acts of God” are not covered by this kind of insurance.
Workers Compensation Insurance Benefits
Benefits include payment of medical bills, reimbursement of wages lost and retraining if the type of injury prevents the worker from being able to resume that kind of work afterwards.
The workers compensation does not pay for any pain and suffering the worker experienced due to the injury or illness.