Workers Compensation Insurance | Get The BEST Quote at WorkCompQuotes.com

What is Workers Compensation Insurance?

Workers Compensation Insurance protects your employees for injuries during the course and scope of employment and it protects your business from related lawsuits.

The Workers Compensation system was established in the United States over one hundred years ago to provide a means for injured workers to receive appropriate care and treatment for job-related injuries or illness without having to incur the risk or expense of bringing a lawsuit against their employer.

Workers Compensation Insurance assures prompt payment to that injured worker without regard to fault. It is a true “no-fault system.” That’s the intent. Workers Compensation is the exclusive remedy for that injured worker’s expenses relative to those workplace injuries. And in exchange for that, the worker may not sue to recover cost. So the system was intended to benefit both injured workers and business owners.

Workers Compensation Insurance is different from other lines of coverage, like auto, and property insurance. Insurances of that nature.

What makes Workers Compensation Insurance different?

Well, it’s the scope of coverage. A workers compensation policy covers the business owner’s obligation to the injured worker under state law. And those laws vary from state to state. The workers compensation system is state-specific. But again, the intent of Workers Compensation is to be No-Fault Coverage if the injury or illness is arising out of or in the course of that employee’s job. In turn, the Workers Compensation policy will cover it.

And what is that coverage?

The standard work comp insurance policy has two primary parts pertaining to coverage, Part One and Part Two .

Part One addresses employee benefits. The first benefit is the medical care. Both the immediate emergency treatment at the point of the trauma being sustained and also all additional ongoing care that might be required. There are no exclusions to this coverage. If the state work comp board says it’s a work related injury, then the policy pays. Part One pays 100% of all medical treatment for injuries arising from work accidents. There is no deductible and no policy limits. This is primarily why workers comp insurance can be so expensive, even a small business with a few employees could run up millions in claims!

The second employee benefit of Part One is indemnity benefits. If an employee cannot work for more than 3 days as a result of their workplace accident, the work comp policy will pay two-thirds of that employee’s average weekly wage during the time that employee is unable to work as determined by the treating doctor.

Part Two of the policy provides Employers Liability coverage. Part Two protects the employer in the event that an employee refuses benefits under Part One . The employee may choose to sue their employer instead. In turn, Part Two protects the business owner from civil lawsuits. If an employee accepts benefits under Part One of the work comp policy, that employee waives their rights to sue their employer for damages related to their injury or illness. Part Two has policy limits and those limits vary in each state.