Workers’ Compensation 101: What Do You Need to Know?

Workers' Compensation 101: What Do You Need to Know?For many small business owners, dealing with workers’ compensation can be a huge headache. 

Why is the system so difficult to manage? While some laws are as clear as day because of their federal reach, some laws are left to be interpreted by the state. This lack of unified law leads to mass confusion for small business owners. Familiarizing yourself with the workers’ comp laws in your state is a must, but there are some key terms that every small business owner must know.

What you need to know about workers’ compensation. 

Most states simply require business owners to purchase workers’ compensation through any insurance company. Here are some terms that every business owner should know when it comes to workers’ compensation.

  • Average Daily Wage: The calculation of an employee’s daily earnings, which is then used to determine Wage Loss Benefits.
  • Social Security Disability Benefits (SSDI): They are payable to physically challenged individuals through the Social Security Administration.
  • Temporary Partial Disability: Benefits are payable when an injured employee can work despite their injury.
  • Temporary Total Disability: The TTD benefits are available when an employee becomes injured on the job, and their injuries leave them completely unable to work for a period of time. The benefits clear when the “temporary” disability clears and the employee can resume working.
  • Permanent Partial Disability: These benefits are payable to an employee that has sustained a permanent, but not complete, disability.
  • Permanent Total Disability: These benefits are available if an injured employee is permanently and completely disabled and can no longer work.

Learning the vocabulary is important, but you should always refer to the state laws so that you can provide your employees with the insurance they deserve. With the proper workers’ compensation insurance, you can ensure your business is protected. Contact Lou Aggetta Insurance Services in Pleasant Hill, California today.

Lou Aggetta Insurance, Inc.

2637 Pleasant Hill Rd
Pleasant Hill, CA 94523

(925) 945-6161 | Phone
(925) 256-7610 | Fax