What Is Workers Compensation and What Does it Cover

Employers often benefit from fully understanding the types of injuries and illnesses covered by workers' compensation. Remember that every policy is different. Your business insurance agent can provide the most up-to-date information on your policy.

What Is Workers Compensation Insurance?

Most states require workers' compensation insurance from businesses. It handles medi Workers Compensation

cal costs and lost wages for those who experience injuries and illness due to work. The federal government has its own workers' compensation program for its employees. Other employers must familiarize themselves with the mandated coverage in the state they operate in. You can obtain this information on the U.S. Department of Labor's website.

It doesn't matter who causes an accident — the employer, the employee, a customer or a coworker. Workers' compensation handles the work-related injury. Notable exceptions apply, however.

Does Workers Compensation Only Apply to the Workplace?

If an injury is job-related, it doesn't matter where it occurred. If you attend a work-related social function or travel for work and get hurt, workers' compensation may apply to your injuries. Coverage also can often apply when employees get hurt working from home. However, they must prove that the injury resulted from their work-related duties.

Exclusions

Workers' compensation often doesn't cover injuries if the employee comes to work under the influence of drugs or alcohol. The following exceptions may also result in the denial of a workers' comp claim:

Self-inflicted injuries
Injuries resulting from a fight the injured person causes
Injuries resulting from illegal activity
Injuries from non-work-related activities
Injuries due to a violation of company policies

What About Long-Term Injuries?

Your injury could follow a sudden fall from a ladder, or it might also develop slowly over time. Repetitive stress injuries, acute and chronic back pain and respiratory illness often result from years on the job. If someone experiences an injury like these, workers compensation' may pay.

What Does WC Cover Besides Medical Bills and Wages?

Workers' compensation insurance pays for hospital and other medical bills and wages you lose due to your injury. It also covers the cost of occupational rehabilitation and may pay for job retraining. Your health insurance might also pay for some of these costs. However, you will need to see which one takes precedence in the context of workers' comp claims.

You may wish to schedule a review of your policy with your insurance agent. This is particularly true if you plan to expand your business in a way that may increase the likelihood of an accident.