Workers Compensation Insurance

Workers compensation insurance is the cash benefit which your employer provides you in case you become disabled due to injury or illnesses while working and the injury or illness is related to your job.

All the employers have a legal and moral responsibility towards their employees to provide the best and safest work conditions to their employees and are thus liable for any form of injury which the employees face while performing their job.

But despite of the safe work environment injuries and accidents do occur. The workers compensation insurance at this place plays the role and provides the employer the necessary cover so that they can provide their employees the cash benefit for basic medical care. It thus protects the employer from the lawsuit due to accidents which might occur at the work premises. To understand the concept in a better way lets understand the workers who will be considered as the employees.

Who is an employee and who are covered by the workers compensation insurance?

An organization can have different types of employees. Some workers work on contract basis, some on daily wages, some on permanent basis and other on the casual basis. The trainees, deemed workers and the workers who receive wages in the form of commission also are considered as the employees of the organization. The employer is liable for the safety of his employees if the employee is working with him on contract, causal or a regular or permanent basis.

Who are not covered in workers compensation?

The employees who work with the organization as volunteers, workers who are working for the non profit organizations as volunteers and who are not engaged in the activities of distributing pamphlets, constructions cleaning the premises, clearing the snow and the likes. The individuals who perform religious duties are also not covered by this law.

According to the workers compensation law it is mandatory for every organization and every employer to provide their workers with the compensation in case they meet with an injury while at work. Every state has its own workers compensation law. Law also provide for specific exemptions such as the employer is not liable for the punitive injuries that might occur while at work. Besides, the injury should occur while at work and not away from it.

The workers compensation provides benefits in the form of cash benefits, supplemental benefits, medical benefits, death benefits and social security benefits. The cash benefits are paid only if the treatment and injury extends beyond fourteen days. And in case the employee dies due to injury or illness, the surviving spouse or the family member is given the benefit on a weekly basis.