provides medical care and wage payment to employees who are injured while performing their jobs. In exchange, the employee relinquishes the right to sue the employer for negligence. This coverage is required under the majority of state laws once a company hires employees.
Workmans comp insurance
When an employee is injured while carrying out work duties, he or she should immediately report the incident to the appropriate party within the company. The employer will ask the individual for information regarding the situation that occurred and will then file a claim with the workers comp carrier. In the meantime, the employee may seek necessary medical treatment at an authorized facility. The employee should submit all treatment and prescription drug invoices to the carrier for payment.
In addition to health treatment benefits, workers compensation insurance will provide the claimant with monetary payment for lost wages during a pre-approved period of time. If the employee is unable to return to the job at the end of that time due to ongoing injury, an extension will need to be filed and approved. Once approved, the employee will be entitled to remain home for an extended period of time without employment retaliation.
This coverage is not cheap for a company to obtain, but it provides the organization with protection from liability. Settlements filed by injured employees against companies that do not have this coverage can range into the millions of dollars. In order for an organization to avoid this potentially bankrupting situation, the designated person should contact the state or a broker to get an insurance quote and then obtain this coverage.
Workmans comp insurance is designed to protect both the injured employee and the employer. The employee will get medical treatment and payment for lost wages due to an on the job injury. The employer will have an additional level of protection against legal liability. If the home state permits purchase of this coverage from private insurers, the organization should do some comparison-shopping prior to purchasing a plan.
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