How Does Workers’ Compensation Work?

Workers’ compensation insurance may provide benefits to your employees who sustain a work-related injury or illness. It may help replace lost wages, provide medical expenses and assist them with returning to work. Additionally, workers’ compensation insurance may be required by your state’s laws, and it may help prevent litigation.

 
At Germani Insurance Services, we can help you secure the workers’ compensation insurance you need. Contact us today to get started.

What Does Workers’ Compensation Provide to Employees?
If an employee suffers an injury or illness as a direct result of their employment, workers’ compensation may provide benefits, including:

Wage-loss benefits—If a work-related injury or illness prevents an employee from returning to work at full capacity, wage-loss benefits may supplement lost income until the employee has recovered or reached the wage-loss benefit limit.

Medical benefits—Employees may receive compensation to cover medical expenses (e.g., doctor and hospital visits) arising from their work-related injury or illness.

Vocational rehabilitation benefits—Workers’ compensation may provide employees access to vocational rehab services to help them acquire new skills if they are no longer able to return to their previous position.

Death/dependent benefits—Workers’ compensation may help cover funeral costs and lost income If an employee passes away because of a work-related injury or illness. These benefits may be provided to the spouse or dependents of the deceased.

The above list is not all-inclusive and workers’ compensation may provide other benefits to employees. Speak with your insurance agent for additional details.

Why Should Employers Secure Workers’ Compensation Insurance?
Workers’ compensation can also be beneficial for employers. Having it may help you comply with applicable state laws regarding mandatory coverage. Additionally, by covering employees, you may reduce the chance of litigation.

How Do Workers’ Compensation Claims Work?
After an employee reports an injury, employers are generally responsible for submitting an injury report to file a claim with their workers’ compensation insurer. This report must be submitted within a specified time frame. Typically, in addition the initial injury report, the process can involve:

1. Employers provide the employee with details on their rights and the workers’ compensation benefits they may be entitled to.

2. Employers or the insurance company requests an interview of the employee to obtain more information about the injury. Other forms may need to be completed depending on your state.

3. Employers may need to interview and obtain statements from witnesses. The employee’s doctor may also submit a medical report.

4. The insurer approves or denies the claim. If the claim is approved, the employer and employee are provided the details, and benefits are paid depending on the needs of the injury. If the claim is denied, the employee may request reconsideration or file a formal appeal, which is typically handled by the state workers’ compensation board.

Specific details and processes may vary by state. Before employees return to work, they will likely need to provide a notice of return to work by their doctor to the insurer and their employer. Other benefits may be provided depending on the situation even after the employee returns to work.

How Much Does Workers’ Compensation Insurance Cost?
The cost of workers’ compensation depends on the industry, type of work performed, payroll, claims history and location, and other various factors.

The team at Germani Insurance Services is ready to help you secure workers’ compensation coverage. Contact us today for more information.