Business is booming.

What Employers Need to Know About Workers’ Compensation Insurance Benefits

The federal government has a system that helps injured or sick employees at work. This system is called workers’ compensation, and it’s a no-fault program. All businesses must carry workers’ compensation coverage. Exemptions are available for sole proprietors, partners, and LLC members and for a family of five or fewer employees (where all five or fewer employees are related). This may not apply to contractors or freelancers.

Medical Coverage

Workers’ compensation insurance benefits pay cash benefits and medical care to employees who are injured on the job. It also protects employers from paying high legal and medical costs if an employee sues them for work-related injuries or illnesses. Most states require employers to carry workers’ compensation coverage. Some, known as monopolistic states, require that businesses secure coverage through state-operated funds. Unlike health insurance, workers’ comp covers all medical expenses related to a worker’s injury or illness – with no deductibles, co-pays, or overall financial limits. In addition, most states allow doctors and hospitals to visit as many patients as they want without requiring approval from the insurer. However, medical bills can be capped by state law once an employee reaches maximum medical improvement (MMI), which is when additional treatment won’t further improve the condition. Likewise, benefits may be limited to the only medicine that helps maintain MMI, or time limits on benefits may apply. Employees must seek appropriate medical care immediately during a work-related injury or illness. In addition, businesses must provide employees with adequate medical insurance.

Temporary Disability Benefits

Employers get protection from lawsuits by injured employees seeking monetary damages for pain and suffering. Under the workers’ compensation system in almost every state, employers must purchase insurance that provides a range of benefits for injured or ill employees due to their jobs. This system strikes a compromise between workers and employers: Employees receive monetary benefits regardless of who was at fault for the injury. Workers’ comp pays temporary disability benefits if you cannot work due to a job-related injury or illness. These benefits can be in the form of cash payments or medical care. In some states, you may be able to receive temporary partial disability (TPD) benefits if you are unable to perform your pre-injury duties but can do light-duty work. These benefits are usually two-thirds of your lost income, based on the difference between what you earned before your injury and what you’re earning now. Generally, you will only be eligible for TTD if your doctor determines that you can’t return to the job you had before your injury because of your condition. If you can return to your job, the doctor will likely restrict your duties or require you to receive treatment for the same condition that caused your injury.

Vocational Rehabilitation Benefits

Vocational rehabilitation benefits are provided to injured employees to help them return to work. Often, these services are designed to help workers transition into jobs that pay the same or more than they were making before their workplace injury. A vocational evaluation is the first step in the vocational rehabilitation process. It assesses a client’s aptitude, interest, general ability, academic exams, work tolerance, and “hands-on” job experience to determine a person’s possible vocational goals. Counseling is also a vital part of the vocational rehabilitation program. It helps clients understand their potential, set realistic vocational goals, and develop successful working habits. The next step is training. This may involve job placement and career counseling, additional education, and training to meet the needs of a new employer. Finally, restoration services are provided to help clients with physical or mental conditions that may prevent them from full-time employment. These services may include medical, physical, or occupational therapy; prosthetics and orthotics; or psychiatry. The vocational rehabilitation process aims to return a client to work as soon as possible. This can be difficult, however, as many disabilities can interfere with the ability to perform job tasks and daily living.

Survivors’ Benefits  

Losing a loved one to a workplace injury or illness can be devastating. It is more complicated when that person is a crucial contributor to your household. It’s important to know that you may be entitled to compensation to help you recover financially. Survivors’ benefits are payments that an employer or workers’ comp insurance company pays to an eligible family member after an employee dies due to a work-related accident. They include compensation for funeral and burial costs in most states. Depending on the state’s laws, they can also cover lost income for the surviving spouse or children of the employee. Benefits are generally paid weekly, equal to two-thirds of the worker’s average weekly wage for a specific period, up to a maximum amount set by the state. According to the order specified in state law, these payments are divided among the worker’s surviving spouse and any dependent children. Survivors’ benefits usually last for life, except for a few exceptions. For example, if the surviving spouse gets remarried, the weekly death benefits stop and are replaced by a lump-sum payment of two years worth of benefits. In some states, survivors’ benefits are also reduced by the surviving spouse’s earnings through Social Security or other means. It’s essential to consult with an experienced attorney about your rights to these benefits.

Comments are closed.