If an employee develops a work-related illness or injury, the resulting damages and losses can be immense. Adequate workers’ compensation coverage can make a sizable difference as your employee and your company attempt to recover and manage the aftermath. Specifically, most policies will include coverage for the following:
Medical expenses—This coverage can help pay for the treatment and rehabilitation of an employee who has been injured or developed an illness.
Wage replacement— This coverage can help an employee recoup their wages if they are injured or become ill and are forced to take time off work.
Legal fees—If an injury or illness leads to a lawsuit, this coverage can help pay your business’s court costs.
Disability benefits—This coverage may help with benefit costs and settlements for an employee who develops a permanent disability following an incident.
Death/dependent benefits—In the event of a work-related death, this coverage can provide financial assistance to an employee’s family.
Workers’ compensation functions similarly to other insurance policies in that a business agrees to pay a premium in exchange for coverage. If a business is carrying workers’ compensation insurance and an employee suffers a work-related injury or illness, a workers’ compensation claim may be filed. This process varies by state, but it typically involves providing information to the employee about their rights and submitting the necessary information and documentation to the insurance company. State-specific resources are generally available (e.g., Pennsylvania Workers’ Compensation Services website) and your agent can provide additional information.