What is Workers Insurance?

Happy construction worker at a building site wearing a helmet
Happy construction worker at a building site wearing a helmet

Employers have not only a moral, but also a legal responsibility to make the workplace safe for their employees. However, accidents bound to happen even when every reasonable safety measure has been taken.

To protect employers from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income to those employees hurt in workplace accidents, businesses are required to buy workers compensation insurance. Workers compensation insurance covers workers injured on the job, whether they’re hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.

Workers insurance provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitation services. It also provides death benefits to surviving spouses and dependents.

Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. Workers compensation insurance must be bought as a separate policy. Although in-home business and business owner’s policies are sold as package policies, they don’t include coverage for workers’ injuries.

What types of expenses does workers insurance cover?
Although the payments are usually modest, workers’ compensation insurance covers:
• medical care from the injury or illness
• replacement income
• costs for retraining
• compensation for any permanent injuries
• benefits to survivors of workers who are killed on the job

But remember that if a person collects workers’ compensation benefits, he or she cannot sue the employer. Wage replacement is usually two/thirds of the worker’s average wage, but there is a fixed maximum amount that the benefits will not go over. That may seem modest, but note that these benefits are not taxed. So, as long as the employee was making a fair wage, he or she should have no major problems. The eligibility for wage replacement begins immediately after a few days of work are missed because of a particular injury or illness.

With Alpha Direct’s workmen’s compensation your employees are compensated if they become injured or suffer a scheduled disease which results in them being temporarily or permanently disabled or if they pass away whilst engaged in the work that they have been employed to do.

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