Workers Compensation Insurance – An Overview

Workers’ Compensation coverage is legally mandated for virtually all businesses in almost every state and applies to bodily injury and diseases arising out of and in the course of employment. A bodily injury must be accidental, and can include death resulting from the accident. Only occupational diseases which are unique to the occupation, are covered.

Workers’ Compensation coverage pays benefits to workers injured on the job, including medical care, rehabilitation, partial lost wages and/or permanent disability. Workers’ compensation schemes are different in every state, as individual statutes and court decisions have shaped the way they handle claims, evaluate impairments, settle disputes, provide benefits and control costs.

As part of the insurance coverage, the injured workers’ medical, rehabilitation and lost wages are paid for by the insurance carrier. If the injury leaves the employee disabled, the insurance carrier will pay the claim based on the extent of the injuries and their permanence. The disability will fall into one the following categories: temporary total, temporary partial, permanent partial or permanent total disability.

Workers’ compensation rates and programs are managed by private insurers, state funds or the National Council on Compensation Insurance (NCCI). Your Nexus Partners Insurance broker can provide more information about how your state handles these programs. Generally, workers’ compensation coverage is broken down into 2 categories:

Part A is mandatory and dictated by the states.  It provides for medical, disability or death benefits to an employee who becomes ill or who is injured in the workplace. Under certain circumstances in some states, those working as independent contractors are considered employees under workers’ compensation law; therefore, if you hire additional help as independent contractors for an event, for instance, consider this provision.  All benefits are paid in accordance with the schedule provided by the states.

Part B covers the liability that may be imposed beyond the state statutes.  It  protects your business against lawsuits due to employment-related injuries or illnesses attributed to alleged employer negligence. Employers can choose the limits of Part B coverage they wish to purchase.

Safety and Workers’ Compensation Costs

Workplace injuries can significantly increase the cost of your Workers’ Compensation insurance.  A good safety program can pay for itself many times over.  Nexus Partners Insurance maintains a full-time safety staff to help you keep your premium costs down and your workers safe.  Ask us about how Nexus Partners Insurance can start saving you money today.