Workers’ compensation insurance, usuallycalled workers’ or workmen’s comp, is a formof insurance designed to provide compensationto workers who have been injured while on thejob. It covers medical and rehabilitation costsand lost wages for employees injured at work;
It started in the 1800s in Germany and spreadthroughout the United States in the 1930s and1940s. Workers’ comp insurance is typicallyassociated historically with labor or professionalunions, and is often the result of coordinatedcampaigns to obtain the coverage for the unionmembers. Proponents of workers’ comp citeimproved working conditions, economic support foremployees, and the safety net provided by theinsurance. Workers compensation provides workerswith the knowledge that on the job injuries are takencare of without the need to sue their employers.Workers compensations sole purpose is to cover themedical expenses accumulated by the injury, as wellas financially support of the employee while they arerecovering.
Workers compensation is mandatory in mostregions through the United States. Workerscompensation is mandated by the state in whichyou conduct business. Work comp coverage is astate specific regulated coverage. The rules andregulations as to how workers compensationcoverage will apply to your business arecontrolled by a regulatory authority in yourspecific state.
Workers’ comp insurance only pays foraccidents and injuries that are work-related.Workers compensation does not just covermedical costs; it also provides incomereplacement for the injured worker due to anon the job injury or accident. Depending on thestate of jurisdiction, the employee might get upto 2/3 of his or her usual wages, until they areable to return to work. It may also pay damagesto a workers family if the worker is unable toreturn to work.
An injured employee may be able to sue and still receive workers compensation benefits:• Product Liability - When a worker is injured by using defective or dangerous equipment, or because of poor instructions, warnings or training about the operation of the equipment• A Third Party on Employers Premises - Sometimes a third party, another company, will be working on the employer premises and commits an act that causes an injury to an employee. If the injury is caused directly by another person, who has no employment relationship with the injured workers employer, it may be possible to pursue separate legal action against that person and his employer.
• If Injury Occurs On Anothers Premises - When a worker performs his job duties away from his employers premises, and suffers an injury caused by someone at the remote jobsite.• Intentional Torts - If an employer actually intends to harm the worker, then the exclusive remedy provision of workers compensation law will not apply. Because of the very specific rules around this situation, this action is seldom used to bring legal action against the employer.• Construction Risks - A very common third party claim situation can be found within the context of construction risks.
If you are a business owner, consider whatwould happen if one of your employees mustmiss work for an extended period of time afterfalling and injuring herself on the job. Theres noneed to worry about paying for medical bills,therapy or other health care needs for thisemployee. Workers compensation insurancecan protect your business from lawsuits.Without the right coverage, an injured workermight sue your business.
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