Negosentro | Compensation Questions: Answers to the 7 Most Common Workers Comp Questions | Unless you’re an employer or have made a conscious effort to understand employer obligations, you might not know much about workers’ compensation insurance. Also known as “workers’ comp,” this form of insurance offers financial protection for employers and employees in case of a workplace illness or injury.
When you hire your first employee, it’s essential to have all the facts about this insurance to remain within the confines of the law. So, we’ve answered some of the most common questions below:
How Do You Get Workers’ Compensation Insurance?
Obtaining workers’ compensation insurance can be much easier than you think. You can obtain an online workers’ compensation insurance quote from your preferred insurer or even contact the State Compensation Insurance fund.
By contacting a trusted insurance company, you can learn all about the most suitable policies for your unique needs, what your policy will cover, and the level of coverage you’ll need to protect your team.
Who Pays Workers’ Compensation Premiums?
Someone has to cover the costs of receiving workers’ compensation insurance, and it’s easy to assume that it will be the employees. However, this form of insurance is taken out and paid for by business owners. Unlike social security benefits, insurance premiums aren’t deducted from the payroll.
How Do You Apply for Workers’ Compensation?
If you have been injured at work or fallen ill due to your job, you might be eligible for workers’ compensation. Generally, the application process is straightforward.
Write down the details of your injury or illness in as much detail as possible, report it to your employer, and ask them to file your claim with their insurer. Your employer can then update you as your claim proceeds through the insurance provider’s system.
How Much Does Workers’ Compensation Insurance Cost?
Understanding the costs associated with workers’ compensation insurance means businesses can allow for it in their yearly budget. Typically, policy costs depend on factors like the number of employees, location, the industry and risk factors, coverage limits, and claims history.
What Does Workers’ Compensation Insurance Cover?
Workers’ compensation insurance is designed to offer a layer of financial protection for business owners and their employees. Typically, most policies cover wages or lost earnings if an employee cannot work, lump-sum payments in case of permanent impairment, and reasonable costs associated with medical care, rehabilitation, and treatment.
How Long Can You Collect Workers’ Comp Benefits?
In most cases, you can collect workers’ comp benefits for medical care relating to an injury or illness for as long as it remains related to the initial cause of that injury or illness.
Can a Workers’ Compensation Claim Be Denied?
While most workers’ compensation insurance providers do their best to accept all worker claims relating to illness and injury, they can be denied for some of the following reasons:
- Missed filing deadlines;
- The condition doesn’t meet state guidelines;
- Pre-existing medical condition;
- The employee didn’t inform their employer;
- The employee accessed out-of-network medical care;
- The injury was related to horseplay;
- The injury was related to intoxication or use of illegal drugs;
- The injury resulted from a fight in the workplace;
- Claims filed after the employee left their job;
- The injury was caused by intentional neglect.
Workers’ compensation insurance may seem complex, but it doesn’t have to be. Familiarize yourself with the basic concepts, receive helpful information from a prospective insurer, and you’ll have the details needed to make decisions for yourself and your employees.