Workers’ compensation insurance covers the medical bills and benefits of injured employees if they have fallen sick due to a work-related issue. It also includes death and disability benefits. Almost all states have made workers compensation mandatory now as it yields a sense of security for the employees.
However, as it is not yet achieved and practiced by all businesses, many people are unaware of the benefits that come along with workers compensation. What does it cover? And why is it important? All of these queries are usually unanswered. Thus, we have summed it all up here, for you, for better understanding.
What does Workers Compensation Cover?
If, as an employee, you suffer from work-related injury or illness, then you must approach your employer, in regards to workers compensation insurance. It should help you cover the following:
- Lost wages
- Medical costs
- Funeral costs
- Ongoing care expenses
It is important to know that these benefits are not available, if you get sick or injured outside of work premises or during personal activities. You cannot fake an injury either because the insurance company holds a complete inspection before accepting your claim.
Who is Covered Under Workers Compensation Coverage?
There are different factors that help determine the need for workers compensation coverage. The requirements vary from one state to the other. But almost all full time employees must have this insurance coverage. Some states are also introducing workers compensation for interns and contractors.
On the other hand, it is important to know that the following workers do not require workers compensation coverage, in certain states:
- Insurance agents
- Real estate agents
- Business owners
- Business partners
- Casual workers
Employees of the federal government aren’t covered by the workers compensation either. Moreover, some states require a minimum employee number to determine the need for compensation insurance. These states are:
- New Mexico
- South Carolina
How to Make Claims for Workers Compensation?
The claim process varies from state to state as well. However, no matter where you live, it is important to make the claim as quickly as possible, after you have been injured.
You must inform the workplace authority regarding the injury or illness that has been caused. Make sure you do so as soon as possible. Once you have informed your employer, it is their duty to get you the required medical attention. Moreover, you will have to connect with your workers compensation provider to make the claim as well.
Some states also have a timeline within which the employee can make the claim. It is usually between 30-90 days. You can check with your state’s authorities and file the claim accordingly.
THE BOTTOM LINE
Workers compensation insurance is extremely important for all types of businesses. But if you are specifically working in an industry that involves high-risk, i.e. construction, then you must check whether the company is offering workers compensation or not. As an employee, this compensation is your right and you must avail it fully.