If you have workers compensation insurance, you need to know what you’re entitled to in the event of an injury at work, and what limits exist to that coverage. This comprehensive guide will tell you everything you need to know about workers compensation insurance and its role in workplace safety.


What is Workers’ Compensation?
If you’re an employer, you need workers’ compensation insurance. Employers are legally obligated to carry coverage for all of their employees, but in some cases your company may still be on the hook for medical costs even if you do have insurance. If an employee is injured at work and not eligible for regular disability payments from their plan, they can file a third-party claim against your business and seek compensation through that avenue.


What are the benefits of having workers’ comp insurance?
Being a business owner is tough. You have your own health insurance, and you probably pay for your employees’ healthcare too. But what happens if one of them gets hurt on the job? If they are injured, they may not be able to work while they recover, and you may be left with no choice but to pay them out of pocket. Worse yet, their injuries could keep them from being able to work at all.


Why purchase this type of policy?
If you have your own business or if you’re working for a company that doesn’t offer it, workers compensation insurance is a must. Without it, your business could end up paying huge amounts of money in order to cover injured employees, which can result in major financial losses. The minimum amount of coverage required by most states is typically $500,000 and includes medical care as well as lost wages. In addition, some states require employers to purchase disability income and survivor benefits.


Types of policies and pricing
As a business owner, it’s important to understand that there are various kinds of workers compensation insurance policies available. What kind you choose depends on your company’s industry and how many employees you have. Also, while most companies will pay for their own coverage, some owners choose to purchase coverage through private insurers. If you have fewer than three employees, it may make sense for you to get quotes from several insurers before deciding which one is right for your business.


Should I purchase coverage through my employer or on my own?
This can depend on a variety of factors, including your job status and where you live. If you’re a full-time employee with no self-employment income and no excepted outside employment—that is, if you work in an office, or at least 35 hours per week—then it may be easiest to have your employer cover workers compensation.


How do I make a claim?
If you have suffered an injury at work, and need compensation, you can make a claim by calling your insurer or going through their website. Filing a claim might seem like a scary process, but most workers compensation insurance policies are easy to use. Just follow their easy-to-read directions, and fill out all necessary information in order to receive compensation for your injuries.


Where can I get more information about my state’s laws regarding workers’ comp?
Every state has its own laws regarding workers’ compensation. Because of that, it’s important to know what regulations apply in your state when you’re looking for a new job. The Chamber of Commerce is an excellent resource that can help inform you about worker comp laws in your area. Simply put in your zip code and it will direct you to all of your options as far as workers’ comp and benefits are concerned.