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What Is Workers’ Compensation Insurance?

Workplace accidents can happen anytime and to anyone. Consequently, employers are required by most state laws to take out workers’ compensation insurance for their employees. This is to protect the financial situation of employees should they suffer an injury or illness while on the job.

If you have more questions about workers’ compensation, call our Arizona Workers’ Compensation Attorneys for further legal advice.

What is workers’ compensation insurance?

Workers’ compensation insurance is also called a workers’ comp. It provides employees with several benefits, including covering:

  • Medical expenses for the treatment of work-related injuries or illnesses
  • Missed wages in case you need time off work for recovery
  • Rehabilitation
  • Death benefits or dependents’ care, in case an employee dies in a work-related incident.

 This insurance also provides employers with the means to support their workers during their recovery.

Workers’ Compensation Insurance by State

Each state has its respective workers’ compensation program. Subsequently, every state sets the benefits and premium amounts based on circumstances unique to it. It also decides who handles the insurance policies, which can be private insurance companies, state-run agencies, of the state itself.

The laws regulating workers’ compensation also vary from state to state. Nonetheless, every state has to determine the same factors surrounding the program. These include:

  • Which injuries and illnesses are covered
  • The benefit amounts
  •  Tests used to diagnose injuries and illnesses.
  • Protocols for the delivery of medical care.

Overall, the laws you are subjected to in terms of workers’ compensation depend on your business location. If you own offices in several states, you should take out policies in each.

Injuries Covered by Workers’ Compensation Insurance 

Workers’ compensation insurance compensates employees who were injured from work-related accidents, terrorism, violence, or natural disasters. Most of the cases often result from lifting heavy objects or slips and falls.

 Jobs that see the most cases include: 

  • Nursing assistance
  • Manual labor
  • Material moving
  • Freight 

Workers’ compensation insurance also covers chemical-related illnesses in the workplace. However, it does not cover illnesses or injuries that:

  • Intentionally caused by an employee
  • Occur due to a fight caused by the employee
  • Happen when an employee is intoxicated
  • Include no physical trauma; that is, they are emotional
  • Take place as an employee commutes to or from work

Who is Exempt from the Workers’ Compensation Insurance Law?

Almost all businesses are required by state law to carry workers’ compensation insurance. However, some states like Texas make this an optional requirement. Also, some workers are exempt because of their employment status and the work they perform. These include:

  • Workers who earn from commission sales
  •  Some insurance sales representatives and real estate agents
  • Part-time employees
  • Employees who are family members
  • Workers who work in exchange for food
  • Volunteers
  • Some state laws also exempt employers with a fewer number of employees than stipulated in the regulations.

Talk to an Arizona Workers’ Compensation Attorney Today

Although the workers’ compensation system should be straightforward, it can be pretty difficult in some situations. Some employers may fail to pay the required amount to employees or their dependents, for instance.

If you are facing any legal problems concerning workers’ compensation insurance, call the Snow, Carpio, and Weekley, PLC office.

Our expert Arizona Workers’ Compensation Attorneys will inform you about your possible legal responses and how to pursue them.