What Does Workers Compensation Cover and How Does It Work?
What is Workers' compensation?
Although the exact definite of workers' compensation varies from area to area, it is universally known as repayment for employees injured at the work site. Each state in the United States will have different rules regarding Workers' compensation, as well as countries. All Workers' compensation cases must occur during employment and usually entail a private court hearing. However, since the rules vary so much between states there can often be discrepancies between companies and employees which must be settled in court.
Workers' compensation goes back as far as 1855 in the United States. In Georgia and Alabama, workers were able to sue their employer for injury related claims because of the Employer Liability act. Since then, nearly every country has enacted some sort of Workers' compensation law. In general, Workers' compensation is actually favored by companies because it saves them from losing money to court fees and lawsuits.
How does Workers' compensation insurance work?
Workers' compensation is usually entitled to any worker that is exposed to high risk environment, especially in the United States. Typically, a company will pay monthly premiums to insurance companies as to avoid excessively and sudden loss of company funds to employee lawsuits. Employees are always informed if they are receiving Workers' compensation insurance, so it is up to the individual to find out what they are provided by their employer.
Sometimes, a compensation case can get complicated. If the incident has many witnesses, then it Workers' compensation is almost always given. However, there are many incidents in which no one is around to witness the accident. In these cases, the afflicted employee will often have to fill out forms claiming Workers' compensation and then the company can decide to either fight against the claim or settle. Claims are worked out in court if the company feels they are being cheated.
What does Workers' compensation insurance cover?
Workers' compensation differs heavily state to state and country to country. In fact, compensation can even vary depending on the insurance company providing the coverage. Typically, an employer should inform its workers of the compensation coverage. In the case that an employer does not inform the workers, it is possible to find out what is covered directly from the insurance provider.
In general, under Workers' compensation you are guaranteed to receive payment after an on the site injury regardless of who is at fault; be it third party people, co-workers, company or self-inflicted accidents. The exchange for these rights is that employees cannot sue the company in court, unless there is a discrepancy about the Workers' compensation claim. In the end, Workers' compensation actually benefits the employer because it allows them to close huge court cases before they begin at a small, consistent price.Source: www.insurance-comparisons.org