Workers’ compensation insurance provides medical benefits and wage replacement to employees who suffer work-related injuries or illnesses.
What Does Workers Compensation Insurance Cover?
Coverage can vary depending on the policy, but it typically includes:
- Medical Expenses: Covers hospital bills, doctor visits, surgeries, prescriptions, rehabilitation, and other necessary treatments.
- Lost Wages: Provides partial wage replacement if an injured employee is unable to work during recovery.
- Disability Benefits: Covers temporary or permanent disabilities caused by work-related injuries or illnesses.
- Temporary Total Disability (TTD): Employee is unable to work for a period but can return.
- Temporary Partial Disability (TPD): Employee can work in a reduced capacity.
- Permanent Total Disability (PTD): Employee can never return to work.
- Permanent Partial Disability (PPD): Employee has a long-term injury but can still work in some capacity.
- Death Benefits: Provides financial support to an employee’s family or dependents if a work-related injury or illness results in death. It also Covers funeral expenses and ongoing support payments for surviving dependents.
- Occupational Illnesses: Covers illnesses caused by workplace conditions..
Most business with employees are legally required to carry workers compensation. Requirements vary by state, but even smalls businesses with one employee may need coverage. Coverage can also be provided for independent contracts or self-employed workers when coverage is required by contract.