As a business owner, you know how important it is to have workers compensation insurance for your business. However, just because you have this coverage doesn’t necessarily mean you understand it. Here is what workers compensation benefits cover.
Workers Compensation Benefits
Workers compensation insurance offers four major categories of coverage.
- Medical treatment
- Wage replacement/Disability benefits
- Vocational rehabilitation
- Death benefits
1) Medical Treatment
When an employee’s injuries or illness are related to their work, this benefit will cover medical costs including:
- Hospital stays
- Doctor visits
- Medical equipment
Keep in mind that the medical treatment has to be reasonable, necessary, and related to the work injury to be covered.
2) Wage Replacement/ Disability Benefits
If an injury keeps an employee out of work, he or she may qualify for wage replacement benefits. To quality they would fall into one of these types of disability:
- Temporary Total Disability – When an injury prevents an employee from working at all, but only for a short amount of time.
- Temporary Partial Disability – When an injury prevents an employee from doing some of their work duties for a short amount of time.
- Permanent Total Disability – When an employee can no longer work their current job.
- Permanent Partial Disability – When an employee is permanently unable to do certain work duties.
The amount of compensation an employee receives is based on what they were paid prior to their injury. Generally, they will receive two-thirds of their salary without it being subject to state or federal income taxes.
3) Vocational Rehabilitation
This covers therapeutic care so employees can make a full recovery from occupational injuries or illnesses. Additionally, if your employees need special training to help them return to work or qualify for a different job, this benefit can help cover these costs as well.
4) Death Benefits
If an occupational injury results in an employee’s death, the family of the deceased is offered funeral and burial expenses. They are also offered a portion of lost wages.
This is what your workers compensation insurance benefits will cover. Interested in finding the right workers compensation insurance to meet your needs? Contact the team at Contractors Insurance Agency. Our dedicated team is ready to get you the coverage you need today.