If your employees get injured, they need the protection of a workers’ compensation policy where a dedicated attorney can help injured employees. This coverage also protects you as a business owner from costly lawsuits. Workers’ comp covers medical expenses and lost wages for employees who suffer from work-related injuries or illnesses. It also provides death benefits in some instances.
Medical Treatment
Depending on the state, workers’ compensation benefits include paying for medical care and partially lost wages after an injury or illness that occurs while working. It also covers funeral costs and death benefits for employees killed on the job. Medical treatments may include physical therapy, pain management, and medication. Generally, an employee must see a health care provider the insurance company pre-authorizes for treatment. However, they can switch doctors if they feel their employer or insurer must provide the best care. In addition, seeking treatment immediately after an incident is essential as this shows that the issue was work-related and makes it easier to prove this later. It is also a good idea to tell their doctor they have workers’ compensation insurance and give them the insurance information (claim number) as soon as possible. Otherwise, the doctor cannot bill the insurance company for their services. This could cost the employee money in the long run. It is against the law for an employer to ask an employee to use their regular medical insurance instead of workers’ compensation.
Temporary Disability
Workers’ compensation pays for the medical care that helps employees recover from work-related injuries and illnesses. It also replaces a portion of lost wages and provides funeral expenses and death benefits to those who die from a job-related injury or illness. Benefits include temporary income payments and permanent disability benefits based on the degree of an employee’s impairment. Impairment is generally determined by a doctor using tests and other methods. A worker’s benefits are typically capped by a maximum weekly amount set by state law. The insurance protects against fraud by requiring employees to see approved doctors regularly and filing reports with the workers’ comp board. This prevents people from exaggerating their injuries or making up an accident to get more money. It also stops employers from hiring scabs for injured workers’ work. In addition, the system provides incentives for employers to rehire partially disabled employees who are ready to return to their jobs. Half of the states have second injury funds that help pay for the costs incurred by new employers when an employee sustains another job-related injury or illness.
Lost Wages
Even the safest workplaces face risks and hazards that can lead to injury or illness. A workers’ comp policy ensures that employees who suffer from work-related injuries can cover their medical expenses and partially replace lost wages. This coverage includes any reasonable and necessary medical treatment due to the injury or illness. This includes doctor’s visits, hospitalizations, surgery, physical therapy, and prescription medication. In addition, workers’ compensation will pay for partial wage loss benefits during the recovery period and death benefits in case of a fatal workplace injury. The cost of workers’ comp depends on the size of your business and its industry classification. Your state’s insurance program also determines the premium rate.
In most cases, employers cannot opt out of workers’ comp, but reviewing the rules in your area is essential. A significant claim can bankrupt a business. Having the proper coverage in place can help prevent this from happening and protect your business’s bottom line. Speak with a local agent or workers’ comp insurance carrier for more information about your state’s requirements and to see available options.
Permanent Disability
In some cases, employees sustain severe injuries that prevent them from working in any capacity. They may not return to their original job, but workers’ compensation provides supplemental job displacement benefits. These funds enable them to undergo job retraining and learn new skills that can help them find employment in other sectors of the economy. This workers’ comp benefit varies from state to state, but most provide two-thirds of the employee’s average pre-injury wages, up to a maximum that varies by state. It also covers the cost of short-term disability aids such as motorized scooters and wheelchairs. Permanent disability is a dire situation. Generally, it occurs when a doctor determines that you will not return to your previous occupation or that you cannot work in any employment for which you are qualified by education, training, or experience. At this point, a physician writes a Permanent and Stationary (P&S) report. This explains your medical condition, work restrictions, and future treatment recommendations. It is a significant step in the process that can be difficult to navigate without legal assistance.
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