What is Workers' Compensation Insurance?
Workers' compensation insurance - sometimes called workers' comp or workman's comp - helps cover medical expenses and lost wages for employees who are injured or become ill due to a work-related event. Coverage can also extend to rehabilitation services and death benefits, providing a financial safety net for both employees and the businesses that employ them.
Benefits for Your Employees
When an employee is injured or becomes ill due to a work-related event, workers' compensation can help cover:
- Medical bills
- A portion of lost wages
- Funeral expenses, in the event of a fatal workplace incident
Benefits for Your Business
Accidents happen - workers' compensation gives your business a financial safety net. Beyond medical bills and lost wages, coverage may also help with:
- Vocational rehabilitation services
- Legal costs in the event of a related lawsuit
How Does Workers' Compensation Insurance Work?
A workers' compensation policy protects both employees and the business itself. Employees gain peace of mind knowing they'll receive financial protection and medical care if injured on the job. For employers, it significantly reduces the risk of being sued by employees, lowers overall liability, and protects the business from major financial loss tied to workplace injuries.
How a Claim Typically Proceeds
The injured employee reports the incident immediately, or as soon as reasonably possible.
The employee receives an initial evaluation from a healthcare provider.
The medical provider completes a report and submits it to the employer's workers' compensation insurer for processing.
The insurer reviews the claim and determines coverage based on policy terms and applicable state regulations.
Understanding what qualifies for workers' compensation matters. For example, a construction worker injured on a job site by a fall or being struck by an object would typically qualify. However, an injury sustained during a regular commute to work would generally not be covered under workers' compensation.
Requirements & Who Needs Coverage
Most states require businesses with one or more employees to carry workers' compensation insurance. As a business owner, this coverage protects you, your employees, and your operations from the financial fallout of unforeseen workplace accidents.
Non-Compliance Penalties
Operating without required workers' compensation coverage can result in significant financial penalties. In California, for example, businesses can face fines of up to $100,000 for non-compliance.
Common Industries That Carry Workers' Comp
What's Covered in a Workers' Comp Policy?
Coverage details vary by state, but most policies follow a similar general structure. For a complete breakdown of what's covered in your state, always refer to your specific policy contract.
What Workers' Comp Typically Covers
A standard workers' compensation policy covers work-related injuries and illnesses for employees, owners, and officers of a company, including:
- Lost wages
- Medical expenses
- Rehabilitation expenses
- Death benefits
What's Typically Not Covered
Certain situations generally fall outside workers' compensation coverage, including:
- Injuries resulting from an employee being intoxicated or using illegal drugs
- Injuries that occur while the employee is not on the job
- Injuries resulting from conduct that violates company policy
Frequently Asked Questions
Stay compliant and protected
PROTECT YOUR TEAM AND YOUR BUSINESS WITH THE RIGHT COVERAGE.
The Fortis Insurance helps businesses of every size secure workers' compensation coverage that meets state requirements and protects both employees and operations from the unexpected.
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