October 4, 2022
Workers' comp can be confusing, so we’re here to cover your most basic frequently asked questions!
Workers' comp insurance helps to protect employers and employees when someone is hurt on the job. Workers' comp can cover the cost of the treatment for an injury and the loss of time worked.
There are two ways that workers' comp policies are paid for. The first is on an annual payment plan, the most common form of payment. This can be organized with the insurance company to be paid monthly, quarterly, or annually. The second form of payment is a pay-as-you-go system, where employers pay their premiums after each payroll. Unlike the annual payment plan, employers pay the actual amount instead of planning around an estimate.
When injured at work, you should report the injury as soon as you can to your employer. Claims can be denied based on your state laws if an injury isn’t reported soon enough. Even if you don’t think you’re seriously injured, report workplace accidents in case an injury develops later.
While this varies state-to-state, most businesses need to have worker's comp insurance. You can check your state laws here.
The benefits you receive from workers' comp vary significantly based on the injury. If you can’t work, you could get temporary disability benefits depending upon the duration of your absence. These benefits usually amount to ⅔ of your paycheck. If your accident results in permanent damage, you could receive permanent total or permanent partial disability benefits depending on the laws of your state. Many companies offer ‘light-duty’ jobs, so you can still work and earn a paycheck while you recover from your injury.
Workers' comp may cover necessary medical treatment and vocational rehab if required.
This is difficult to answer without context. Workers' comp can cover a variety of injuries related to your job. These injuries include repetition injuries, like carpal tunnel or breathing problems caused by workplace hazards.
Some injuries not covered by workers' comp include:
Learn what workers' comp covers that you might not expect: Things You Didn't Expect That Workers' Compensation Will Cover
Again, this varies from state to state.
Generally, full-time employees are covered by workers' comp. Most states have laws about coverage for contractors, temps, and interns. Federal employees are not covered by state workers' comp; instead, they are covered by federal workers' comp. Some states do not require insurance for farmhands, insurance agents, family members under a certain age, casual workers, business owners and partners, and real estate agents. Because of how much variation there is between states, it is crucial to know your state's laws.
Generally, workers' comp benefits are not taxable. If an employee also receives retirement benefits, Social Security Disability Insurance, or Supplemental Security Income, they may need to pay taxes on a portion of their benefits.
Reach out to us! We can put you in touch with a knowledgeable, friendly, and experienced independent insurance agent to help you through the process: www.normandyins.com/