The Ins and Outs of Worker’s Comp Insurance
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The Ins and Outs of Worker’s Comp Insurance

Worker’s compensation insurance is an essential requirement for businesses in most states throughout the United States. There are many benefits for employees to have some worker’s compensation insurance like monetary repayment in case of injury or sickness, medical treatment, ongoing care, and in some instances, death benefits too. This blog will explore the ins and outs of worker’s compensation insurance to help you understand it.

What Is Worker’s Compensation Insurance?

The insurance money gets paid out if it can be confirmed that an injury or illness is work-related.

The Ins and Outs of Worker’s Comp Insurance

Sometimes a claim can be rejected, leading to an appeal process where a judge ultimately has the final decision. There are several different policies and benefits to worker’s compensation insurance, including in some cases, a death benefit for those that died due to work-related reasons.

Worker’s compensation insurance protects employees while they are at work. It provides everything from wages to medical care for people hurt while at work performing their duties. Employees don’t contribute to the fund; employers do. But it is essential for businesses across most states.

What Does Worker’s Compensation Insurance Cover?

There are many inclusions in a worker’s compensation insurance policy. This means that employees can enjoy a range of benefits if they are injured or suffer an illness while at work or caused by their work. These include:

  • Medical expenses. This consists of any hospital or doctor visits, medications, and emergency surgeries
  • Ongoing care, including physical therapy and therapist visits
  • Lost wages are covered to a certain amount while the worker is unable to work for recovery
  • Disability benefits if the injury has caused a partial or permanent disability to the worker
  • It typically provides death benefits if a worker dies on the job. This includes funeral costs as well as survivor benefits for the remaining family

Since the Covid-19 pandemic, seventeen states have extended worker’s compensation coverage to include this as a work-related illness. It may depend on your state whether you have to be a specific type of worker or if it includes any employment. As the pandemic progresses, this might change.

What Is Not Covered by Worker’s Compensation?

There are, of course, limitations to the inclusions of worker’s compensation insurance. If you try and make a claim for one of these exclusions, it’ll likely face rejection. These include:

  • A workplace fight. If a fight at work between you and another worker results in injuries for either party, the insurance policy may not cover you
  • Most policies typically exclude commuting. However, it depends on whether you are in a work vehicle or don’t have a physical office for most of your job. You would have to research such inclusions when signing onto a policy
  • Intoxication or substance abuse at the time of injury is a standard exclusion from all worker’s compensation insurance policies

Worker’s compensation insurance is a must for most companies throughout the United States. To protect your business, your employees, and yourself, you need to purchase worker’s compensation insurance from either a state-run agency or a private company. Having a solid policy that protects all involved parties will benefit your business in the long run, so it’s essential to do your research.


If you need business advice or information on maintaining workers’ compensation insurance, don’t hesitate to contact the friendly experts at Cornerstone Business Solutions. We’d love to help your business thrive.