Workers’ Compensation Insurance

All businesses in a state that aren’t covered by federal programs are required to carry workers compensation insurance coverage for all employees. This insurance coverage helps to insulate your business from many lawsuits related to working conditions that may result in an employee injury or illness.

While it doesn’t absolve business owners from responsibility for providing a safe work environment, it does help businesses provide for the treatment and care of employees who are injured or killed in the course of their work..

What Types of Injuries does Workers’ Compensation Insurance Cover?

Workers’ compensation coverage applies to injuries that happen to employees while on the job. It doesn’t mean employees must be on the premises in order for it to be a workers’ compensation claim. What it does mean is that the employees must be acting on behalf of your business.

This insurance covers all costs for the medical treatment of injured employees. It replaces wages that are lost when employees are unable to work due to injuries or the treatment of those injuries. It even provides coverage for those who are permanently disabled due to accidents, injuries, illnesses contracted while on the job.

In some cases, vocational rehabilitation or job placement assistance is covered when employees are unable to return to roles they’ve held in the workplace previously due to the scope or degree of their injuries.

Death benefits are paid out to surviving dependents in the event that the injury, accident, or illness results in the death of the employee.

Are There Areas Workers’ Compensation Doesn’t Cover?

Workers’ compensation coverage does have its limitations. There are some things this type of insurance doesn’t cover, including the following:

  • Injuries received off-duty.

  • Injuries received during activities that go against company policy (including horseplay).

  • Injuries received in the course of a felony.

  • Self-inflicted injuries.

  • Injuries caused as a result of intoxication, alcohol, or drug use.

  • Injuries claimed only after an employee has been laid off or fired.

Independent contractors are not employees. Injuries to them are not covered by workers’ compensation. Employees who begin fights and are injured as a result are similarly not covered.

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