What is Workers’ Compensation Insurance?

What is workers’ compensation insurance?

Workers' compensation insurance, also frequently known as ‘workman's comp’ insurance, is meant to compensate employees and their families for injuries or illnesses that can happen as a result of work. Need workers’ compensation insurance right away? We can help provide you with a customized insurance quote today!

What does workers' compensation insurance cover?

Workers' compensation insurance primarily covers an employee’s medical bills, but it can cover time for lost wages as well that happen as a result of the illness or injury.

For example, Cheryl is working on a construction site and trips over a piece of metal, breaking her leg badly. Workers' compensation insurance will likely cover the majority (if not all) of Cheryl’s hospital bill, including the surgery that she needs to reset that broken leg.

While she recovers though, Cheryl is unable to return to construction for several weeks. Workers' compensation can also cover Cheryl’s lost wages during this time so that she does not suffer a financial hardship because of the accident.

Why do businesses need workers' compensation insurance?

The reality is that accidents and illnesses happen at work, whether it’s a trip and fall like Cheryl, an accidental injury caused by a co-worker, a chemical spill that leads to an employee illness, or even a serious injury that leaves a worker incapacitated.

Without workers’ compensation insurance, an injured employee or their family could sue the employer to cover medical costs, rehabilitation bills, and even pain and suffering, and the company would be directly on the hook. These damages can be in the millions or even tens of millions of dollars depending on what happened, and those sorts of bills are painful for even the largest companies.

You truly never know when an injury might arise. Even if there does not appear to be high risk, employees can hurt themselves lifting something heavy, tripping over something that’s fallen, or in other unexpected ways.

How does workers’ compensation insurance work?

When an employee is injured, they need to report it to the employer as soon as possible so that the employer can make a claim for their workers’ compensation benefits. Once that claim is made, it goes through a review board known as an Appeals board at the state level.

The Appeals Board conducts an investigation to review the claim, and will often want to have the employee assessed by a medical professional to look into the extent of their injuries. Employers may try to dispute that an injury occurred on the job site because any successful claims can impact their insurance premiums. This may mean that the employee needs to submit plenty of information in order to have their claim approved. Once the investigation is completed though and the claim is approved, the insurer will pay out and the employee can finally get their benefits.

How do you get workers’ compensation insurance?

Simple! Foxquilt has brought 21st century technology to the insurance world so that you don’t have to dress up and drive downtown to meet with anybody, or have someone come to your office to give you a presentation you don’t have time for. We’re out to make insurance quick, painless, and as easy as can be. Visit our website to learn more about workers’ compensation and how you can start a quote today.