Worker's Compensation Insurance

Worker's compensation insurance pays the bills for reasonable medical care for a worker injured in the course of employment, including doctor visits, prescriptions, medical supplies, mileage to medical appointments, chiropractic visits, and physical therapy. Workers are allowed to choose their own doctors for treatment of their injuries; however, at some point the insurer might request that the injured worker undergo an Independent Medical Examination with a doctor the insurer chooses.

Worker's compensation insurance is usually the right choice. The system of worker's compensation insurance was put in place to protect both employers and employees. Thanks to this system, employees are protected from expenses incurred as a result of on-the-job injuries and employers are protected from having to pay these expenses out of their own pockets. This is helpful to both parties because the expenses of not being able to work, coupled with the expenses that come from necessary medical treatment, can add up to one big price tag.

Worker's compensation insurance coverage protects the employer from complete financial liability and possible legal action. Instead of a huge liability cost, the employer pays a premium based on the size of the business, number of employees, and the amount of injuries the business has been accountable for in the past, in comparison with other businesses in the same field and area. Each year a business' insurance premium can rise, lower, or stay the same depending on these factors.

Even if you are covered by worker's compensation insurance, you can make a claim for negligent conduct against anyone who caused you injury, as long as it is not your employer or a co-employee. At The Insurance Smith, we see this arise most often when the injured party is driving on the job and is involved in a motor vehicle accident caused by another driver. The injured person can collect worker's compensation benefits and make a claim against the other driver's insurance. In such cases, the worker's compensation insurance carrier will be entitled to "subrogate" to the claim and seek reimbursement for the money it has paid out.

Each state has a different set of laws for worker's compensation insurance coverage, ranging from the percentages an insurer must pay, drug testing, safety standards, and the minimum amount of employees needed for coverage. While in Missouri a company can employ less than five employees and not have to provide worker's compensation insurance, in California an employer must have coverage for even one employee. An employer must research their state's minimum employee requirement for worker's compensation insurance coverage before hiring employees in order to calculate the entire costs of running the business and to comply with state regulations.

The American system is simple and equitable for workers and employers alike. The worker's compensation insurance law guarantees workers cannot be terminated due to time lost because of an on-the-job illness or injury. It ensures injured workers retain financial autonomy and unfettered access to medical care, while it protects employers against limitless lawsuits and potentially crippling civil judgments.