How Does Workers' Compensation Insurance Work?

This blog was written by Tisha Morgan, Senior Risk Management Specialist at Helpside.

Workers’ compensation (work comp) insurance is required of all companies that have employees with a few exceptions. Here are the basics of?workers’ compensation?insurance:

What is Workers’ Compensation?

Workers’ compensation insurance?covers?medical costs for qualified work-related employee injuries or illnesses. It can also pay temporary disability benefits after a waiting period or permanent disability benefits for an employee who becomes disabled due to an accident on the job. Additionally, work comp can pay death benefits if an injury or illness caused at work becomes fatal.

Who Needs Workers’ Compensation Insurance?

Nearly every state requires employers to offer work comp as soon as they have one employee. The states of Ohio, Wyoming, Washington, and North Dakota require employers to purchase workers’ compensation insurance from a state government-operated fund. Having work comp insurance in place before an injury occurs can save your company money and stress. You don’t want to be stuck with a significant medical bill or lawsuit.

Benefits of Workers’ Compensation Insurance

There are quite a few benefits to carrying workers’ compensation insurance. First, since work comp coverage is required in most states, purchasing it will keep your company in compliance. Many states can have hefty fines for not having work comp coverage in place. Second, work comp can protect you from unexpected medical charges, but can also protect you from liability if an employee sues your company over injuries or illnesses sustained at work. Your employees will also greatly appreciate having work comp insurance. Most workers’ compensation plans provide a portion of employee wages so if the injury or illness forces them out of work for a time, the employee is still able to pay their expenses. Additionally, work comp will pay out even if the accident was the employee’s fault, so employees are always covered. Keeping employees safe, healthy and at work is the goal.

Workers’ Compensation Claims Process

The claims process for work comp is time-sensitive, so you need to be sure to follow the process outlined by your work comp carrier. In most cases, the first step of the claims process is to report the injury or illness to your carrier. Depending on the severity of the situation, medical attention may come before reporting. Once you have filed your claim with the carrier, they will reach out to you and the injured employee for more information and begin processing the claim. Clients on Helpside’s work comp plan have the added support and expertise of our Work Comp Claims Director, Raul Ontiveros. With more than 20 years of experience in workers’ compensation claims management, Raul regularly communicates with injured workers, clients, and carrier adjusters to ensure quality treatment of the injured worker and the best possible claim outcome for business owners. His unique approach to claims management helps keep workers’ compensations cost down for clients.

Want Help with Workers’ Compensation?

Helpside offers workers’ compensation insurance as well as workers’ compensation consultations. Do you have more questions about workers’ compensation plans? Reach out to Helpside at [email protected]