Workers Compensation Insurance

Often called “Workman’s Comp,” this insurance covers the occurence of employee injuries. It provides wage replacement and medical benefits to employees who are injured at work.

In exchange, employees relinquish their right to sue their employer for negligence. Therefore, Workers Compensation Insurance protects employers from costly lawsuits while also assuring employees that they are guaranteed some coverage in case of illness or injury on the job.

When a business owner has Workers Comp Insurance, their employees who become injured or disabled at work will not need to pay their medical bills, as these will be covered under the policy.

The injured employee will also receive monetary compensation to cover lost wages, either during the recovery stage, or longer, depending on the extent of the physical harm or disability suffered.

First and foremost, Workers Compensation protects your employees by giving them back a portion of their lost wages if they are hurt on the job, as well as paying for related medical expenses. 

The business is also covered if any employees bring suit against it claiming that your negligence was the reason for their injury or illness. The lawsuit costs and those related to the damages to the employee are covered here. 

An injured employee can make a claim under your company’s Workers Compensation Insurance policy if their injury were sustained either:

1. in the actual workplace, or
2. in the “course and scope” of their employment.

A deceased’s employee’s dependents can make a claim if the deceased, your former employee, was killed in a work-related accident or illness.

• Employees’ medical expenses for illness and injury suffered due to on the job accidents
• Occupational illnesses
• Repetitive stress injuries
• Workplace violence
• Stress-related mental injuries, like PTSD
• Death benefits for employees’ dependents
• Rehabilitation services and retraining programs

This insurance only covers injuries that happen on the job, so anything that happens to employees when they are off the clock or not performing official duties likely won’t fall under this policy. For example, if a employee is injured during their personal time, such as during a gym session or over the weekend when they’re not required to be working, they won’t be covered. 

While some employees have argued to expand coverage because they are always working or thinking about work, courts have enforced common sense limits. For example, if your employee falls out of bed because they are having a work-related nightmare, their injuries will not be covered. 

General damages for pain and suffering, and punitive damages for employer negligence, are generally not available under this type of insurance claim. Negligence is generally not an issue in these cases. 

Workers Compensation laws are designed to give employers immunity from liability above the amount provided by their policies. However, in some states, an employer can still be held liable for greater amounts if the claimant can prove they recklessly or intentionally caused them injury, harm or illness. In other states, while employers might be immune, third parties like subcontractors or machinery manufacturers may face liability. This also applies when injuries happen while an employee is committing a crime. 

Workers Compensation Insurance covers injuries or illnesses until they become permanent and stationary. Then, employees may be entitled to permanent disability benefits and lifetime medical care.