Workers’ compensation, also known as workers’ comp, is a type of insurance that provides pay replacement and medical benefits to employees injured while on the job. This compensation is provided in exchange for the employee’s compulsory relinquishment of their right to sue their employer for negligence. One of the issues that the compensation agreement addresses is the issue of businesses going bankrupt due to large damage verdicts.
The compensation plans vary by jurisdiction. Provisions can be made for weekly payments instead of wages. The compensation pays for losses, reimbursement or medical expenses, and benefits to the dependents of workers killed while on the job.
In most workers’ compensation schemes, general damages for pain and suffering and punitive penalties for employer negligence are not available, and negligence is usually not an issue in the case.
Benefits of Workers’ Compensation Insurance
- Medical Treatment Benefits
Workers’ compensation insurance provides compensation for medical expenses if you are injured at work and file a workers’ compensation claim. It covers expenses related to
- Visits to the doctor
- Hospital admissions
- Medical examinations
- Medications on prescription
- Medical equipment such as wheelchairs and crutches
- Physical therapy
- Mileage reimbursement
Injured workers enjoy these benefits until they are fully recovered and able to return to work.
- Workers’ Compensation Benefits for Disabilities
If your work injury prevents you from working, you may be eligible for workers’ compensation disability benefits. These benefits fall into one of four categories to cater to different cases. The categories are:
- Temporary total disability
- Temporary partial disability
- Permanent total disability
- Permanent partial disability
- Career Support Rehabilitation Benefits
Your work injury may prevent you from returning to the same job or possibly returning to work at all. Workers’ compensation funds should assist with vocational rehabilitation and other career support programs if this occurs.
- Death Benefits for Dependents
Nobody wants to think of dying as a result of a work accident. However, if this occurs, it is comforting to know that any dependents will be cared for. Death benefits are paid to the deceased worker’s family and dependents. Funeral and burial expenses are also covered as part of the death benefits.
How Is Workers’ Compensation Calculated?
The general formula for estimating the cost of workers’ compensation insurance for your company is:
Workers’ Class Code Rate X Claims Experience Modifier X (Payroll /$100) = Premium
Get Started with Workers’ Compensation Insurance
The first step is to contact an insurance company. Lou Aggetta Insurance assists business owners by providing the best workers’ compensation estimates based on their company’s size but at affordable rates. Contact us today to get started!