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Workers Compensation Insurance – Things You should Know

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workers' compensation insuranceAre you employed in any type of establishment where you can be injured or fall ill? If your answer is yes, workers compensation can be something which you need on priority. Have you heard about it? If not, you should learn about it. A person who has completed workers’ compensation certification program can tell you how beneficial it is. Roughly, it is a type of insurance which you can buy and it will cover any employment-related illnesses and injuries you may undergo. Here is some more information.

What is Workers’ Compensation?

Workers’ compensation is also called workman’s compensation or just “workers comp”. This is a state-authorized program containing payments needed by law to be given to an employee who is wounded or disabled because of work. Workers’ compensation insurance to federal employees is offered by the federal government; and every state has its own workers’ compensation insurance program. Check the workers’ compensation program of your state at an appropriate office.

In most events, injured workers get workers’ compensation insurance, regardless of the fact that who was guilty for the injury. Since this program benefits by acting as a type of insurance, it prevents workers from suing her/his employer for getting compensation for the injury.

What Type of Situations are Covered?

Workers comp is designed to cover injuries caused because of negligence of employees or employers. The range of situations and injuries covered is quite wide; however, there are limits. Drug and alcohol testing can be imposed on the injured employee by the state. And if the employee is found to be under the influence of one of these two at the time of injury, compensation benefits can be denied to that employee. Also, if the injuries were self-imposed where the employee was breaching a rule or company policy or if s/he was not working at the time of injury, compensation may be denied.

What Expenses are Covered by Workers Comp?

Though the payments are often modest, workers comp covers the cost of:

  • Medical care
  • Compensation for permanent injuries
  • Costs for retraining
  • Replacement income
  • Survivors of workers who are killed while being on the job

One thing to keep in mind is once the workers compensation benefit is collected, the employer cannot be sued by the affected worker or her/his family.

Also pain and suffering are not covered by workers’ compensation insurance.

Income replacement is often two-thirds of the average income of the worker. However a fixed maximum amount is set beyond which the benefit cannot go. This may appear modest, but it should also be remembered that the benefits are not taxed. The eligibility for income replacement starts instantly after you miss a few days of work due to the injury or illness.

Who can take Benefit of Workers’ Compensation Insurance?

Mostly all types of employees can take the benefit of this insurance. However, some workers are excluded from the coverage by the states, like:

  • Business owners
  • Independent contractors
  • Volunteers
  • Farmers and farmhands
  • Employees of private homes
  • Railroad employees
  • Maritime employees
  • Casual workers

Since federal government employees are covered under the federal workers’ compensation insurance program, they are not covered by the state workers’ compensation program. Some states don’t impose workers’ comp program on employers having employees fewer than 3 to 5. This differs from state to state.

Visit NRWCS.com if you want to know more about earning a workers’ compensation certification with which you can become a Registered Workers’ Compensation Specialist (RWCS).

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