What Are The Most Common Reasons For Needing Worker's Compensation?

Why Get Workers Comp Benefits?

The cost of workplace accidents, whether caused by negligence or intentional acts, is devastating. It can mean medical bills, lost wages, legal fees, and pain and suffering. Workers' compensation insurance provides financial security and peace of mind in the event of an accident. However, not all workers are entitled to coverage under the law, so it is important that you understand your options before signing on the dotted line.

Workers' compensation laws are administered by the state department of insurance. In most states, employers have the option of purchasing their own insurance or contracting with an insurance carrier. Your employer may be required to purchase workers' compensation insurance, but not all businesses do. If you work for a private employer that does not provide workers' compensation, then you are not covered. There are many exceptions, such as if you are self-employed or employed by a federal government agency.

If you are self-employed, then you must pay for your own workers' compensation coverage. If you are employed by a business, your employer may require you to purchase workers' compensation insurance, but you may not be eligible for benefits unless your job meets certain requirements. For example, you may not qualify if you work for a subcontractor, or if your injury is not a result of your employment. You should check with a workers' compensation attorney to determine your eligibility.

In addition to your own policy, your employer may also offer workers' compensation coverage through an insurance carrier. This is a good choice for businesses that are not required to have their own policy. Most carriers offer a range of policies, from temporary to long-term disability, and from basic to comprehensive coverage.

Your employer may offer both your own insurance and a carrier's insurance. Some employers may contract directly with the carrier, while others will hire a broker to do it for them. If your employer offers both, then you need to compare the benefits and costs of each option. You may be able to save money by choosing a carrier that offers less coverage, but you should only do this if you can prove that the carrier will still provide adequate benefits if you are injured on the job.

When you work for a large company, you may not realize that there are multiple levels of insurance coverage. Many companies will offer employees basic coverage that covers basic medical expenses and temporary income replacement, but it may be inadequate in the event of a serious injury. Companies that are required to provide more extensive coverage may offer it to you as an employee, or you may have to purchase additional coverage on your own.

Most states require employers to offer at least two forms of coverage to their employees, so it is important to understand the types of coverage offered.

The most common types of coverage are:

• Short term disability (STD) – This covers you for up to 26 weeks after the date of the injury. The coverage is generally for 100% of your weekly wage, up to $5,000 a week.

• Long term disability (LTD) – This covers you for up to 52 weeks after the date of the injury, or until you are deemed unable to return to your occupation. Coverage is usually for 60% of your weekly wage, up to $8,000 a week.

• Medical care – This covers you for medical expenses, such as treatment, medications, or rehabilitation. The amount of the benefit depends on the plan, but typically it is 100% of the first $100,000 in charges, and 50% of the next $100,000.

• Death benefit – This pays your family or estate if you die as a result of your work-related injury. The amount of the benefit varies by state.

Many states also offer voluntary plans, but you are not required to accept them. Voluntary plans offer different benefits than mandated plans, but you may want to consider them if they are available in your state. Voluntary plans typically cover the same benefits as mandated plans, but the maximum benefit amounts are lower.

The bottom line is that the type of coverage you receive is usually dependent on the type of business you work for, the size of the company, and the type of industry you are in. It is important to talk to an experienced workers' compensation attorney to determine your coverage options.