Many people have heard about workers’ compensation insurance, but they might not understand what the benefits are. Workers’ compensation insurance is taken out by employers to cover them for any illnesses and work-related injuries that occur. If you are going to be taking this insurance, you need to know what the benefit and limitations are.
What Will Not Be Covered By Workers’ Compensation?
Before you look at getting workers’ compensation insurance, you need to know what is generally not covered. This insurance has been designed to cover injuries which have resulted from the carelessness of the employee. This means that a range of situations and injuries will be covered, but there are some limitations.
There are certain states which require injured employees to undergo alcohol and drug tests before the insurance will pay out. If the employee fails the tests, the insurance will not pay out the benefits. Compensation will also be denied if the injuries are deemed to be self-inflicted, if the employee was violating the law or any company policy and if the employee was not on the job at the time of injury.
What Expenses Are Covered
Before taking out insurance, you need to know what the insurance will cover. There are certain payments that workers’ compensation insurance will generally make. However, it is important to note that these payments will generally be modest.
The insurance will generally pay for medical care related to the injury as well as replacement of income which is lost as a result of the injury. Costs of retraining will also be covered as will compensation for any permanent injuries. If an employee is killed on the job, the insurance will also cover the benefits to the workers surviving family.
However, it is important to note that is workers’ compensation benefits have been claimed, the worker is not able to sue their employer. It is also important to note that this insurance will not cover any pain and suffering compensation. The wage replacement that is offered by the insurance will also be around two-thirds of the average age and will have a fixed maximum amount. While this might not seem like much, it is best to remember that these benefits will not be taxed and as long as the worker was making a fair wage there should be no problems.
Workers’ compensation insurance is something that all employers should have. It is important that you understand the benefits of this insurance and what is covered before getting a policy.