Understanding Workers’ Compensation Coverage

Workers’ compensation insurance is something that every employer must carry by law. But it is also something that companies should carry to show their workers that the workers are a valuable asset to the organization. In the construction industry, workers’ compensation insurance is a critical part of owning a construction company. Workers’ compensation ensures that the company can care for its employees in the event of an accident, and it also protects the company from being sued for medical expenses that arise due to an injury on the job.

What Is Workers’ Compensation Insurance?

When an employee is injured or becomes ill while on the job, then workers’ compensation insurance is used to treat that worker. The process starts with a form filled out by the worker’s immediate supervisor detailing the events that took place before, during, and after the accident or exposure to damaging materials. Once the company approves the report, it is sent on to the company’s worker’s compensation insurance carrier.

Workers who are using worker’s compensation insurance to be treated should know that they cannot use their regular health insurance for treatment. This might mean that workers will have to go to a different doctor to get treatment when using workers’ compensation benefits.

What Does Workers’ Compensation Insurance Cover?

Worker’s compensation insurance covers all medical expenses to treat only the injury or illness that occurred while on the job. If a worker does not miss any time at work, then workers’ compensation insurance is only used to cover treatment costs.

If a worker is forced to lose time at work, then workers’ compensation is used to pay the worker a percentage of their regular compensation. In the event of a permanently disabling injury, workers’ compensation will choose to either pay the worker an income for the rest of their life, or offer the worker a one-time settlement.

Can A Worker Receive Their Regular Pay Along With Workers’ Compensation Benefits?

In just about every state, a worker cannot receive their regular pay while receiving workers’ compensation. When a worker’s doctor, or the workers’ compensation doctor, says that a worker can return to their job, the workers’ compensation wage benefits will cease. In some cases, workers are forced to return to lower paying jobs due to their injuries. In these instances, workers’ compensation will not make up the difference between the worker’s new salary and their old one.

What If I Have A Dispute?

Each state has its own workers’ compensation board, and workers have access to attorneys who are experts in workers’ compensation cases. Any worker who has a dispute with how their workers’ compensation case is being handled can retain an attorney and file a dispute with the state’s workers’ compensation board.

As risk management experts, it is our job to make sure that our construction clients have the amount of workers’ compensation coverage they need to protect their workers, and keep the state agency satisfied. We always recommend a regular review of workers’ compensation insurance with each client to see if any changes need to be made to keep the program in line with our clients’ needs.

It is easy for a construction company that does not utilize a professional risk management organization to pay too much for workers’ compensation insurance. That is why our business experts work hard to make sure our clients have only what they need to cover their employees and run their businesses.