Workers Comp Essential

Workers’ compensation insurance, usually called workers’ or workmen’s comp, is a form of insurance designed to provide compensation to workers who have been injured while on the job. It covers medical and rehabilitation costs and lost wages for employees injured at work;

It started in the 1800's in Germany and spread throughout the United States in the 1930's and 1940's. Workers’ comp insurance is typically associated historically with labor or professional unions, and is often the result of coordinated campaigns to obtain the coverage for the union members. Proponents of workers’ comp cite improved working conditions, economic support for employees, and the safety net provided by the insurance. Workers compensation provides workers with the knowledge that on the job injuries are taken care of without the need to sue their employers. Workers compensation's sole purpose is to cover the medical expenses accumulated by the injury, as well as financially support of the employee while they are recovering.

Workers compensation is mandatory in most regions through the United States. Workers compensation is mandated by the state in which you conduct business. Work comp coverage is a state specific regulated coverage. The rules and regulations as to how workers compensation coverage will apply to your business are controlled by a regulatory authority in your specific state.

Workers’ comp insurance only pays for accidents and injuries that are work-related. Workers compensation does not just cover medical costs; it also provides income replacement for the injured worker due to an on the job injury or accident. Depending on the state of jurisdiction, the employee might get up to 2/3 of his or her usual wages, until they are able to return to work. It may also pay damages to a worker's family if the worker is unable to return to work.

An injured employee may be able to sue and still receive workers compensation benefits:

• Product Liability - When a worker is injured by using defective or dangerous equipment, or because of poor instructions, warnings or training about the operation of the equipment

• A Third Party on Employer's Premises - Sometimes a third party, another company, will be working on the employer premises and commits an act that causes an injury to an employee. If the injury is caused directly by another person, who has no employment relationship with the injured worker's employer, it may be possible to pursue separate legal action against that person and his employer.

• If Injury Occurs On Another's Premises - When a worker performs his job duties away from his employer's premises, and suffers an injury caused by someone at the remote jobsite.

• Intentional Torts - If an employer actually intends to harm the worker, then the exclusive remedy provision of workers' compensation law will not apply. Because of the very specific rules around this situation, this action is seldom used to bring legal action against the employer.

• Construction Risks - A very common third party claim situation can be found within the context of construction risks.

If you are a business owner, consider what would happen if one of your employees must miss work for an extended period of time after falling and injuring herself on the job. There's no need to worry about paying for medical bills, therapy or other health care needs for this employee. Workers' compensation insurance can protect your business from lawsuits. Without the right coverage, an injured worker might sue your business.

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