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Whether you’re an employer or employee, one of the most important ways to protect a business and its employees is through workers’ compensation (or “workers’ comp”). While most people are familiar with the concept, there is much information that you might not be aware of with this type of insurance.
Here is an overview of what workers’ comp is, how it works and who can help businesses ensure they have the right steps in place for this type of insurance.
Workers’ compensation is insurance that provides medical and/or wage benefits to employees who have sustained an injury or developed an illness as a direct result of their job or working conditions.
There are different mandates state by state regarding coverage as well as wage and medical benefits, but generally speaking, most states require employers to have workers’ compensation insurance for their business.
What’s Typically Covered: Although it varies by state, generally speaking, workers’ comp covers:
In Florida, workers’ comp also includes coverage, which allows businesses to pay legal expenses should an employee sue their employer for a work-related injury or illness.
What’s Typically Not Covered: This also depends on the state, but here are a few examples of the types of things that might not be covered through many insurance plans:
It is the responsibility of employers to pay for this insurance to cover their business and its employees, and under workers’ compensation law, at no point shall businesses require employees to contribute to the cost of this insurance or compensation.
While most states require workers’ compensation coverage, there are some that do not. For those states, this insurance is elective. Browse this state-by-state comparison of workers’ comp requirements online to learn more.
In most cases, the employee is required to report their work-related injury to their supervisor first, then they are sent for treatment if they wish to be treated. The employee can then file a workers’ comp claim, being sure to include any paperwork or forms that are required by their state to submit.
If eligible, the employee will receive their compensation and may return to work when they are cleared to do so by the treating physician for the workers’ comp claim.
Understanding workers’ compensation insurance can be complicated, as there are different requirements per business as well as per state. If you’re a business looking for assistance with workers’ comp, let a trusted resource like Professional Employer Resources (PER) be your guide. We offer workers’ comp insurance for all our clients and assume all administration of these policies while working directly with carriers to reduce costs and get employees back to work quickly during or after recovery, depending on their abilities.
When you work with our team at PER, you get access to:
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