What are the Different Types of Workers Compensation Insurance Benefits?
Workers compensation insurance is designed to give several benefits to your employees in certain circumstances. These benefits are usually given in case of a work-related injury or illness. This insurance policy is legally required in majority of the States in USA. The employers are required to buy this insurance policy and provide it to their employees.
Coverage Parameters of Workers Compensation Insurance
There are many workers compensation insurance benefits for your employees. Four of the most prominent ones are;
- Healthcare Coverage
- Disability Benefits
- Vocational Rehabilitation
- Death Benefits
- Lost Income
Generally, insurance agencies do not offer different types of workers compensation insurance. This insurance policy is quite standard, whether you get it from your insurance agent, or from some state fund. There are some carriers who offer endorsements over the coverage which can work to extend the terms and limits. Moreover, the benefits and coverage parameters vary state by state.
1. Healthcare Coverage
It is common for the employees to get themselves injured or catch an illness in a hazardous work environment. The employers and government can try to make the jobs as safe as possible. But sometimes, injuries or illnesses are inevitable. In such cases, workers compensation insurance would provide coverage so your employees might gain medical treatment. The insurance policy will pau for;
- Doctor’s Fee
- Hospital and Emergency Room Expenditures
- Therapy / Rehabilitation
- Recovery Equipment
The employees might face a severe enough injury or illness that it causes them to receive an ongoing care. Such costs are generally too high for the low-level employees to afford. Workers compensation costs are low in comparison. They cover the full costs in such circumstances. However, there are some traditional treatments which are not covered by it, such as;
- Naturopathic Treatment
- Homeopathic Treatment etc.
The insurance is pretty convenient for those who have unavoidable hazardous work environment. However, a work-related injury can even occur from the most innocuous things. You can break your leg by tripping down the stairs or get a substantial shock while handling the copier machine. That is why this insurance is recommended despite the potential for dangerous work.
2. Disability Benefits
There are many instances when employees have sustained a disability from a work-related injury or illness. Such cases are rare, but they do happen. Work-related injuries are classified into four subsequent categories;
- Temporary Complete Disability. It means the injured employee is completely disabled and cannot work for a certain duration of time. However, said employee can return back to work at full capacity once cured.
- Temporary Partial Disability. It means the injured employee can still work, but at a reduced pace. A sprained ankle from a falling cabinet is an example of this. The employee can eventually return to work full capacity.
- Permanent Complete Disability. It is an injury or an illness which leaves your employee completely disabled. Said employee can never return to work in full capacity as a result of such disability.
- Permanent Partial Disability. It means the employee has suffered a permanent injury, but can eventually return to work. However, said employee will never regain past work capabilities.
Workers compensation law is pretty clear. This insurance can help provide appropriate coverage for an employee who has to spend some time away from work. It can provide compensation for the lost wages. The disabled employees can receive disability benefits for life. Remember, disability benefits vary state-by-state.
3. Vocational Rehabilitation
An injured or disabled employee is going to require rehabilitation. This is necessary in many cases if they wish to return to full functionality. Workers compensation insurance will cover for the rehabilitation charges. This also includes physical therapy. If the injury is severe enough to discourage return to the same profession, the employee can learn a new skill. Workers compensation will provide help by covering new training, licenses and certifications.
A disabled employee might also receive a Transferable Skill Analysis. This makes it easy to find other skills and capabilities that might allow disabled employee to find a new job. Generally, a vocational counselor performs this analysis. It can help your employees find new training and new jobs. The employees can still receive coverage for lost wages, in addition to the rehabilitation program.
4. Death Benefits
Life is uncertain in its certainty. An accident can happen any time and any place which claims someone’s life. In such cases, the workers compensation insurance would provide death benefits to the deceased employee’s beneficiaries. These funds can help them in covering funeral expenses and lost income. The upper limits for such coverage’s differ state-by-state. A private insurance company can even deny the perceived extravagant or unnecessary expenses. In most cases, the beneficiaries are the immediate family of the deceased employee i.e. Parents, Spouse and Children etc. Several States do not allow children older than 18 to receive the death benefits. However, there could be an exception for children with disabilities.
5. Lost Income
An employee might be forced to take some time to recover from a work-related injury or illness. The workers compensation insurance can provide an employee with coverage for their lost income. This lost income benefit goes to the beneficiaries if said employee is dead.
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2) Why is it Important for Employers to Obtain Workers Compensation Insurance?
Get Access to the Best Workers Compensation Insurance in Texas
SG Financial Inc. can provide you the opportunity to gain an excellent workers compensation insurance policy for your employees. It does not matter whether there is a high risk in work environment, or the employees work inside safe cubicles. Every business owner must realize its importance from the economical, legal and moral perspective. We can even provide you with the services of a competent workers compensation attorney. Therefore, you must not waste time and avail this policy.