Workmans Compensation | Insurance Glossary | Insuring Your Business
Workers' compensation is typically carried solely by the employer, who usually purchases workers' compensation insurance. The cost of workers' compensation coverage cannot be charged to the employee.
Workers' compensation is regulated at the state level and is compulsory in every state but Texas and New Jersey. These two states have detailed procedures for electing not to be covered, but they have strong incentives for employers to provide it. In all of the other states, employers that do not carry workers' compensation insurance are in violation of the law and can be penalized with substantial fines, imprisonment or both.
When an employee is injured on the job, suffers a work-related illness or disease that prevents him/her from working he/she is eligible to receive benefits and free medical care form your state workers' compensation program. If their disability is classified as permanent or results in death, additional benefits are available.
Some states require employers to purchase insurance for their employees from a workers compensation insurance company. Some states allow larger employers who are solvent to self-insure or act as their own insurance companies and smaller companies, employing less than three employees are not required to carry worker's compensation insurance.
The worker's compensation system provides benefits to injured workers whether or not an injury is caused by the employer's or employee's negligence, although, there are some limits. In most states, injuries resulting from a worker's intoxication, intention to harm himself or another, the worker's , commuting injuries, and injuries resulting from recreational activities are not covered.
An injury does not need to be caused by an accident. Employees can receive compensation for repetitive stress injuries, (carpal tunnel syndrome and back problems, that are caused by overuse or misuse). Also, illnesses and diseases that are the gradual result of work conditions ( heart conditions, lung disease and stress-related digestive problems).
Most state workers' compensation laws are "extraterritorial, "meaning an employee hired in one state and hurt while in another state, is eligible for workers' compensation under the hiring state's law. Some states limit the time the employee can have been out of state for coverage to apply and some states give the employee the option of claiming coverage under either state.
For more Information go to:
Division of Federal Employees Compensation has made a variety of forms available online.
Amerisafe - The Hazardous Workers' Comp Specialists(SM)
Guard Insurance - In examining a business's operations, we can identify the likely sources of injuries and illnesses which, in turn, enables us to properly assist in the prevention of accidents, help minimize medical and indemnity claim costs, offer a properly priced policy, and much more.
Yahoo Directory Of Workers Compensation Providers
Central Insurance Companies - Workers' Compensation Insurance
Workers' Compensation - DirectoryInsurance.com