Workers Compensation Insurance Helps Employers and Workers

Every state requires job provides to carry workers compensation insurance coverage, which pays for lost income, medical benefits, physical therapy and other rehabilitation services for workers who are injured on the job or performing work-related duties. Employees accept the payouts in lieu of going to court and suing their employers. Instead, workers waive their right to sue their bosses in exchange for the benefits provided from the compensation insurance plans.

The insurance plans give workers a greater level of protection against workplace injuries and potential loss of incomes. They also protect job providers, who do not have to contend with a spate of lawsuits whenever a worker is injured on the job or claims to have been. The agreement is known as the “compensation bargain,” and there are several types of compensation insurance plans for workers.

A stand alone compensation insurance plan is a simple type that offers basic coverage for medical costs and loss of income, but a plan offering a payroll program can help those payments get through a bit faster so injured workers can pay their bills sooner. Some can even be compatible with QuickBooks and other types of accounting software to make payments promptly.

The types of workers compensation insurance plans vary greatly by state, and most can be modified to pay weekly, every other week or monthly, depending on worker and employer agreements as well as state law. Compensation also can be had for economic loss due to the injury, such as if the worker has a side business mowing lawns or repairing vehicles and is unable due to the workplace injury. Among types of injuries that might be covered by insurance compensation plans for workers are back injuries caused by lifting heavy items, slip and fall accidents, injuries from fires and injuries from vehicular accidents, among many others.

Workers cannot collect for damages for pain and suffering as well as punitive damages for employer neglect. Nor can workers collect for injuries or ailments sustained off the job that prevent them from doing their jobs, such as suffering sports injuries. Workers compensation insurance makes it possible for workers to keep their jobs their employers to know their positions will be filled by qualified employees when their convalescence is completed.

There was a time when a worker injured on the job had no rights in the United States and simply lost that job. But the rise of workers’ rights and state and national labor laws during the early 20th century made it possible for compensation insurance plans to become a reality and help protect workers who are injured on the job. But most job providers over the years realized the value of paying fair wages for a fair amount of work and keep their jobs secured. Now when a worker is injured on the job, state and federal laws require they be allowed to return to work in the same or similar capacity with compensation for lost wages and other income. By Mike Heuer