Workers’ compensation is a system that provides compensation to employees who have been injured or become ill from their work. The compensation may be paid in the form of medical care, rehabilitation services, and cash benefits. These 8 facts about workers’ compensation are vital for you to know before you make a claim!
Fact #1: Workers’ Compensation Insurance is mandatory in most states.
Worker’s compensation insurance is an insurance policy employers purchase to cover the costs of compensation claims filed by their employees. This includes medical care, lost wages, and rehabilitation services. This insurance is mandatory in most states.
Fact #2: Workers Compensation Insurance is not free.
Workers’ compensation is not free! All worker’s compensation premiums are paid for by employers. According to the seasoned legal professionals behind Schweickert Ganassin Krzak Rundio, LLP, they can’t be passed on to consumers in the form of higher prices or lower compensation. It is strictly a business expense for employers. This means that if you are hurt on the job, compensation will come out of your employer’s pocket.
Fact #3: Workers’ compensation is exempt from taxes.
Taxes affect many different facets of life – including compensation claims! If you file a worker’s compensation claim for injuries sustained on the job, it may be tax-exempt. This means that any money received from compensation claims is not taxed. This can be a big financial relief especially if you are unable to work for an extended period of time because of your injuries and need compensation in order to pay bills or buy groceries.
Fact #4: Workers’ compensation does NOT cover everything.
Workers’ compensation insurance covers several different types of expenses, but it will never cover everything. If you are injured on the job, compensation may be paid for medical care related to your injuries, lost wages, and rehabilitation services. This insurance will not cover damage done to equipment or property as a result of an injury (for example if you break something while at work). It is also important to note that compensation does NOT include pain and suffering or emotional distress. This means that compensation will not cover any physical, mental, and/or emotional pain and suffering you may experience as a result of an injury on the job.
Fact #5: Compensation is NOT guaranteed.
Workers compensation insurance claims are subject to approval by your employer’s workers compensation insurer (the company that provides coverage for injuries sustained on the job). If your compensation claim is denied, you may have to file a lawsuit in order to receive compensation. It’s important that you know what qualifies as workers’ compensation and how it can help!
Fact #6: There are deadlines for filing compensation claims.
There are strict time limits on when you must file your compensation claim after an on-the-job injury. This means that compensation claims are not valid if you do not file within these deadlines, even if you have a good reason for filing late (for example because your employer did not provide paperwork in order to make it easier to file). Most compensation claim deadlines vary depending on where you work and how long you were employed there. If you do not file compensation claims within this time frame, compensation may be denied.
Fact #7: Compensation is NOT a lawsuit.
A worker’s compensation claim should not be confused with filing a lawsuit against your employer for injuries sustained on the job! If you are injured and receive compensation from an insurance company to help cover medical care or lost wages, this compensation claim is NOT the same as filing a lawsuit against your employer. If you file a compensation claim and win, compensation will be paid by an insurance company rather than awarded in court.
Fact #8: Compensation claims should not impact hiring practices.
If you are looking for work after being injured on the job, this does not mean that a compensation claim will automatically disqualify you from being hired. Compensation claims should not impact your ability to be employed and compensation may even help cover costs associated with training programs or education so that you can find work!
Types of Coverage
There are two types of compensation that can be paid out to employees who have been injured or become ill on the job: medical care and cash benefits. Medical coverage often includes reimbursement for therapy, surgeries, drug prescriptions, treatments procedures, and hospital stays while cash compensation takes the form of compensation checks or lump sum payments.
The Average Cost of Workers Compensation Insurance
According to the Law Office of Benjamin Schwartz, in 2012 employers paid $0.71 per every $100 in wages for workers’ compensation insurance premiums on average. This is up from an average cost of $0.63 in 2011 and represents a 26% increase in compensation costs.
When to File a Workers Compensation Claim
Employees should file workers’ compensation claims as soon as they are injured or become ill because, in most cases, the legal period of time for you to make your claim is only two years from the date that the injury occurred! If you wait too long it could be deemed “concealed” and your compensation claim will be denied.
What you Need to Know if You Are Injured
If an employee is injured at work, they should immediately contact their employer or supervisor so that the situation can be documented properly for their worker’s compensation insurance company. The sooner you file a compensation claim, the better! It makes no difference if you were injured by a coworker, boss, or even your own negligence.
As mentioned above there are several important facts about workers’ compensation that individuals should know before they file their compensation claim. If the compensation claim is denied because of an error on behalf of the employee it will not be reinstated! It can also give rise to other legal issues such as a lawsuit for compensation or litigation.
Understanding the different types of disability claims is a critical element in making sure you receive the benefits that are rightfully owed to you. If you have any questions or concerns about whether your injury meets one of these definitions, don’t hesitate to get in touch with the legal experts! This will allow you to get what you deserve when it comes to workers’ compensation benefits.