In most states all employers are required to purchase workers compensation insurance. In other states there may be exceptions to this rule if the employer is very small or for other reasons. The laws that govern workers compensation insurance are different in every state, so it is difficult to understand all of the many complex laws that fall into this category. However, simply understanding that such insurance exists to protect the interests of both employers and their employees helps to engender a certain peace of mind.
In the not too distant past there was no such thing as workers compensation insurance or any laws governing such coverage. A worker who was injured on the job or became ill as a result of their employment could simply be fired because they were no longer able to perform their job. In many cases the injured worker who found themselves out of work had little recourse in the situation beyond suing their former employer for damages. Workers compensation insurance, and the resulting legislation, changed all of that. Now employers could easily be held accountable for an employee’s injury or illness without having to go through the grueling process of litigation. The resulting system is one that is far less expensive and far more expedient than settling such matters through the court system.
Employers purchase workers compensation insurance from an insurance company that specializes in such policies. This is a very particular area of coverage that is not offered by all companies or agents. However, like all insurance products this is a competitive market where employers can find the insurance company that offers the best coverage for the best price. The insurance agent will assign the employer a particular workers compensation class code. This class code helps the insurer determine how much the employer will pay for premiums and the rates for which they are eligible. Generally speaking, if the employer engages in a business where there is a higher chance of personal injury incidents, their rates will be higher than those for an employer whose workers perform their duties in a safer environment.
Workers comp insurance is not something with which most employees will ever have to become familiar. Unfortunately, there are always exceptions to this. Workers who have been injured through an accident in which they were at fault and also workers who were injured as the result of someone else’s negligence are both similarly eligible to receive compensation benefits. As long as they were working for the benefit of their employer, and the employer has such coverage or is required to have such coverage, they should be able to receive aid.
Because a workers compensation claim is a complex procedure it is advisable to hire legal counsel at the outset. An experienced lawyer can help the claimant successfully navigate through all the forms that must be filled out and can appear with them at any hearings. Lawyers can also enter into negotiations on their client’s behalf. In most cases an attorney can not only eliminate a good deal of the employee’s stress in such a case, but can also bring about a successful resolution in a fraction of the time in which the employee could do it on their own.
Workers comp insurance is a business necessity that protects both employers and employees. Even conscientious employees may suffer an illness or injury as a result of their work. When this happens it is best to acquire the assistance of a qualified attorney to help navigate this process. Workers comp insurance helps employees get back on their feet and back to work.