“What is workers’ compensation insurance?”

The Basics of Workers’ Comp

Many people have wondered, “What is workers’ compensation insurance?” Some employers may believe that their basic property and liability policies will cover employees injured on the job, but that is not always the case. A workers’ comp policy can protect everyone and alleviate associated costs, such as medical bills and lost wages, if a worker sustains an injury at work. Both the employer and the employee bear responsibilities in these situations.

Employer Responsibilities

Most states require employers to carry workers compensation insurance. If they do not meet state requirements, business owners can be fined. Business owners must also report injuries to the workers’ compensation board and the insurance company.

Employee Responsibilities

Employees must also report accurately and efficiently. If an employee is injured on the job, he or she must complete the following checklist:

  • Report injury to employer.
  • Seek treatment in a timely manner.
  • Provide documentation of treatment and doctor’s recommendation (if any) of time to be taken off work.
  • File claim.

Workers’ compensation requirements and procedures include many nuances. Whether you are a business owner or an employee who has been injured while doing your job, your state board or insurance agent can answer the question “What is workers’ compensation insurance?” as well as any other queries you might have concerning your rights and responsibilities.