Workers’ compensation insurance is a beneficial coverage for employers and employees alike. This type of policy helps cover expenses that result from an employee becoming injured or ill while at work. It can also provide death benefits to the dependents of an employee killed in a work-related accident. Workers’ compensation insurance can be confusing, so we’ve answered some of your commonly asked questions.
Contact your agent at RCU Insurance Services for additional help and to have a conversation about workers’ compensation insurance.
What Does Workers’ Compensation Cover?
Workers’ compensation insurance comes with several benefits that employees can receive under their coverage.
- Medical benefits: If an employee becomes ill or injured at work, this portion of benefits can help pay for medical treatment. As long as the care is associated with the work-related injury, it will be covered under the policy. A variety of medical treatments aren’t accepted, but this varies depending on each state. Be sure to read through your state-specific limitations and requirements.
- Wage loss benefits: There are several types of disability benefits from which to choose. These include:
- Temporary total disability (TTD) —This applies when an employee is removed from work until they are medically released.
- Temporary partial disability (TPD) —This applies when an employee may return to work at a limited capacity per physician’s orders.
- Permanent partial disability (PPD) —This applies when an employee has a permanent disability but can continue to work at a limited capacity.
- Permanent total disability (PTD) —This applies when an employee is not going to improve from their injury any further and is unable to return to work at any capacity due to their work-related injury.
- Vocational rehabilitation benefits: If an employee becomes ill or injured due to work and will be unable to return to their job because of it, this benefit can help them get training to reenter the job market. Career planning, job placement and skills training are all typically included as part of this benefit. Services provided vary by state.
- Death and dependency benefits: If an employee is killed from a work-related accident, injury or illness, benefits are paid out to a spouse or dependent. Laws regarding payment amount and who is able to receive the payout depend on each state’s guidelines.
Workers’ compensation requirements are determined by each state. Most states require workers’ compensation coverage, while others exempt small employers from carrying it. For the state of California, workers’ compensation insurance is required by law, even if the business has only one employee.