Every employee is at risk of a work-related injury. Workers’ compensation insurance offers financial protection to employees in a situation where they face a work-related injury or illness. In most states, employers are responsible for buying excess insurance to provide various coverage policies for employees. The policy exists to help employees who are injured in their line of jurisdiction. This article explores four types of workers’ compensation policies which include medical, rehabilitation, disability, and death benefits.
1) Medical Benefits
Buying medical coverage means that the policy will come in handy and cater for medical bills for injury following an accident. You are only eligible for this type of coverage when your employees sustain an injury or contract an illness during the scope of their work. No matter how minor, medical bills can add up quickly after a work-related incident. Provided you pay a yearly premium, the insurance company will quickly pick up your employees’ medical bills in times of need. Since policies differ based on the insurance company and location, it is critical to read and understand the policy before making the purchase. Your employees could sue you for damages in a situation where you fail to buy workers’ compensation insurance. Therefore purchasing a policy for your employee is critical in escaping court and protecting your financial assets as an employer.
2) Rehabilitation Benefits
In a situation where your employee is unable to return to their previous job due to an on-the-job injury worker compensation policy provide some type of vocational rehabilitation to such workers. In cases where your employee may be unable to work in the same position after an accident, your policy may pay for tuition and other training expenses. Rehab is designed to help people who have been injured or disabled return to work. It covers treatments that help your employees regain the skills such as career counseling, job training, and assistance in finding new employment. As you buy compensation insurance it is important to include a vocational rehabilitation policy so that those who cannot return to work because of their injuries can also benefit.
3) Disability Benefits
In a situation where work-related injury renders your employee disabled, the worker may have to withdraw from work temporarily or permanently. During that period, your workers’ compensation coverage may pay for a portion of employees’ lost wages. Disability benefits fall can be categorized into temporary and permanent. How much your employee receives as benefits depend on whether they are receiving temporary total disability, temporary partial disability, permanent partial disability, or permanent total disability.
4) Death benefits
Death benefits are paid to the worker’s spouse, minor children, and other dependents in the rare case that one of your employees dies as a result of a work-related injury. Funeral and burial expenses may be costly. In such cases, workers’ excess insurance can cushion the family members for funeral and burial expenses. Depending on the state and insurance company, a qualified dependent can receive a weekly payment or lump sum after the employee’s death. Your employee’s family may still be eligible for benefits in a situation where an occupational hazard accelerates their death.