In several states, it is mandatory for employers to buy worker’s compensation insurance. The insurance ensures that the workers receive medical treatment for workplace-related injuries and illnesses and are compensated for the loss in income while they are unable to work. The coverage is beneficial for the employer too. It protects you from lawsuits filed by the aggrieved employee.
As an employer, you must know about the types of benefits that worker’s compensation insurance provides to your employees. The blog will help you to understand in detail what the benefits are and how they work.
If your employee is injured or falls ill in an accident at the workplace, they must inform the concerned authorities about the incident. As the employer, you are responsible for filing the worker’s compensation claim with your insurance provider. Once your insurer accepts the claim after assessing the situation, the worker receives the following benefits depending on the type and severity of their condition.
Medical benefits
The benefit includes the expenses of the medical treatment that your employee may receive. The costs include:
Physician’s consultation fees
Miscellaneous medical care charges
Medicines
Physical therapy sessions
Equipment such as wheelchairs and crutches
Chronic pain management
The insurance covers the medical costs of the patient till they reach Maximum Medical Improvement (MMI). MMI refers to the state beyond which there is no further scope for improvement in the patient’s medical condition. After that, the treatment costs may be limited to the level needed to maintain MMI. However, time limitations may apply.
Disability benefits
If the workplace mishap leaves your employee disabled, the disability benefit may recompense for the lost income. Depending on the worker’s disability, it has been classified into:
Temporary partial disability
Temporary total disability
Permanent partial disability
Permanent total disability
Usually, the benefit amount is a percentage of the employee’s average weekly wages (AWW). Most states follow the two-thirds ratio when fixing the disability benefit amount. They may have to wait for 3-7 days to receive the benefit.
However, some states follow certain guidelines that limit the benefit to:
Specific time period
Limited amount
Till a certain age of the employee
Rehabilitation benefits
For employees with permanent disabilities, who cannot return to work, the worker’s compensation insurance provides rehabilitation benefits. It includes providing new skills to them and equipping them to resume work more suited to their current physical condition and with a salary closest to what they earned before the accident.
Most states require employers to provide the benefit, and it may continue for up to two years. It covers the expenses for:
Occupational counseling
New skill training and certification course from an accredited institution
Other associated educational costs
Job placement programs
Death benefits
If the on-site accident leads to your employee’s death, a death benefit is provided to their survivors. It also includes funeral costs. If the death occurs later but is due to work-related causes, it will be covered.
If you want to learn more about worker’s compensation insurance, contact our team today. At Corbett & Associates Insurance Agents & Brokers, we can help you find the right coverage with maximum benefits for your employees.
