Across the nation, the laws governing worker’s compensation insurance vary by state. However, a large number of states require public and private employers to carry it. Worker’s comp insurance protects both the employer and employee in the event of an injury while the employee is on the job.
If an employer does not carry worker’s comp insurance, there are several legal consequences. Hefty fines and even criminal penalties can be given to an employer who is found without any form of worker’s compensation insurance for their employees.
What Is Worker’s Compensation Insurance?
Worker’s compensation insurance covers the employee and employer in the event of an injury on the job. The employer’s insurance company will pay money to the injured employee, and the employer will not have to cover this cost alone. Worker’s comp insurance will often cover the injured employee’s medical care in addition to their lost wages or income from being unable to work.
Do All States Require Worker’s Compensation Insurance?
Worker’s compensation laws are all different throughout the nation. Not all states require employers to have this insurance, but most do
Even states that require worker’s comp insurance have exceptions to the rule. The exceptions consider factors such as the type of trade or industry the employer is in, the number of employees that the employer has under his control, among other factors.
Even if your company falls under the exclusionary rules, you may still want to purchase workers compensation insurance. If you don’t, you may be liable should the employee litigate and the courts rule in his or her favor, forcing you to pay out of pocket.
Because of the varying laws and exceptions, handling worker’s compensation claims requires proficient legal counsel. Employers should consult with a reputable worker’s compensation attorney in their area to see if their business requires worker’s compensation insurance, and if so, what type is best to fit their needs.
Acquiring Worker’s Compensation Insurance
Employers can acquire worker’s compensation insurance from private corporations in their state, or sometimes from a state-funded insurance program.
Premiums will vary by provider, but there are many considerations that will affect an employer’s coverage. Exactly what the cover protects against, the amounts, what is provided to the injured employee, and more vary by state.
Changes are constantly being made in the insurance claim process and coverage requirements, which has made navigating the field increasingly more complicated.