Are you taking up a new job? Find out about your new company's Worker's Compensation Insurance. It can help you recover costs for any injury that might occur to you during the job. We inform you about every aspect of Worker’s Compensation Insurance below.
What is Worker’s Compensation Insurance?
It is every employer’s duty to take due care to provide a safe workplace. However, this is not always possible. In such cases, a Worker's Compensation Insurance accepts liability for any harm done.
As per best practices, employees can reduce the Worker’s Compensation Insurance premium they have to pay by managing risks, coordinating disability programs, trying their best to avoid assigned risk, raising their deductibles, taking advantage of saved opportunities and making sure that the premium is configured correctly. Hiring a risk manager to assess your risk of having to pay hefty Worker’s Compensation is also a good idea.
How Does Worker’s Compensation Work?
It works dually – to ensure that injured employees receive proper medical attention and compensation for part of their income that they lose out for not being able to return to their job, and secondly, to protect themselves from lawsuits which injured workers might file against them. Every injured worker is liable for receiving the benefits of a Worker's Compensation Insurance irrespective of who was at fault for the accident. In case of a worker's death, their dependent receives the privileges of this coverage. Offering a worker's compensation, then, is an effective manner in which businesses can thwart unnecessary lawsuits from injured employees.
What Does Worker’s Compensation Cover?
Worker’s Compensation covers any and all injuries that employees sustain in their office premises or while acting in the “course or scope” of their employment. Traffic accidents are a major cause of worker’s compensation death claims. These accidents happen when an employee is in a vehicle for work-related purposes, whether in the company car or inside their own. That said, driving to and from work is not covered by Worker’s Compensation Cover. Besides this, Worker’s Compensation Insurance also provides compensation for any other injuries which the employee might be subject to, while they are working, even if it isn’t directly related to their work. For eg: In the event of a terrorist attack, natural disasters, workplace violence and so on.
Who Pays for Worker’s Compensation Insurance?
Employers pay their employees Worker’s Compensation Insurance. Worker’s Compensation Insurance is calculated as a percentage of your payroll. There are no employment payroll deductions for Worker’s Compensation, as with health insurance. Any company which hires more than 3-4 people is mandated to offer Worker’s Compensation Insurance. Companies pay a premium to a state-run insurance program or to an insurance company, which then pays the employee. The premium paid is a percentage of the total amount of coverage which the injured employee is entitled to. Most businesses prefer to choose insurance companies instead of state-run insurance programs to pay their employees a Worker's Compensation Cover.