In the modern world, work processes and regimes are continuously advancing towards safer and more shielded environments to keep the employees out of harm’s way. Despite that, the probability of an employee getting injured or sick as a consequence of their job can never be completely eliminated. This holds especially true for hands-on, on-site jobs like mining or construction work. Workers’ compensation is a government-mandated policy that is designed for such instances, where a worker sustains an injury while working.
What is Workers’ Compensation?
Workers’ compensation is a type of insurance that employers offer in the instance of a worker suffering an injury as a result of their employment. For example, a construction worker would be entitled to a workers’ compensation claim if they sustain an injury as a result of falling from scaffolding. Similarly, a sales executive heading to meet prospective clients could be entitled to compensation in the unfortunate case of a car accident. It is important to note here that the injuries or disabilities that this particular compensation covers need to be the direct result of the employee’s work responsibilities. An employee won’t be entitled to the benefits of workers’ comp if they get into a road accident while trying to make it to the job site. Workers’ compensation also caters to disabilities that occur as a result of your employment. In the case of the death of an employee from work-related accidents, the employers may be liable to compensate the surviving members of the family.
The Compensation Bargain
It’s crucial to understand the benefits and conditions associated with the compensation policies offered by the employers in order to mitigate the impact of a work-related injury on your livelihood. The compensation bargain is such a condition that enables the employers to avoid a legal lawsuit from an employee for the sustained injury. If an employee files a compensation claim, and it gets approved, they relinquish their right to sue the employer. This benefits both the employee and the employer by letting the employer avoid getting a lawsuit for negligence while promising guaranteed compensation to the employee.
Benefits and Coverage
The benefits offered in a workers’ compensation policy may vary according to the state you’re in, but generally, the following benefits are considered standard in the insurance industry.
In the case of an injury sustained while working, an employee is eligible for claiming the medical compensation offered in the workers’ compensation policy. The compensation may include reimbursements for doctor’s appointments, emergency visits, medications, etc. Serious injuries at work that require immediate medical attention are usually qualified for compensation.
If a worker becomes unable to work due to a disability caused by an injury sustained while working, they can claim the disability benefits offered under the compensation policies. In the case of a temporary disability, the compensation is paid in the form of lost income while the worker is unable to work due to their affliction, till they return to work. In the case of a permanent disability, the employee is generally given disability benefits for life.
The benefits offered in the compensation policy may include covering ongoing care such as physical therapies or training offered to enable the affected employee to work in a different role.
Funeral Services and Life Insurance
In the unfortunate event of an employee losing their life in a work-related accident or illness, the compensation policy can provide benefits to the family of the deceased to help them cover funeral expenses and lost income. Most companies have a limit to these expenses and may deny the claims if the expenses are deemed unnecessary. Monetary benefits may also be provided in the form of lost income. The immediate dependents of the deceased are eligible to receive these benefits. Children of the deceased who are over the age of 18 years aren’t eligible for any compensation according to the laws of some states.
The costs and compensations offered under the workers’ compensation policy vary from injury to injury. It is important to be aware of the laws regarding the compensation plan. Generally, accepting the workers’ comp offered by the employer is the best choice if an unfortunate incident befalls you while you’re at work. In the case of life-threatening injury or any disabilities, talking to an insurance lawyer about it can prove beneficial as incidents are often scrutinized on a case-by-case basis.