Is workers’ compensation insurance required by law?

May 29, 2023
2 mins read
Is workers’ compensation insurance required by law?

Workers’ compensation is a type of insurance that is meant to provide medical benefits and wage replacement when a worker is injured. These are injuries that occur at work or while performing work-related activities. Any worker who gets injured under these circumstances has the right to sue their employer for negligence which may result in them getting paid for their medical expenses, long-term care, and pain and suffering. If you have sustained an injury at work and are unsure as to how to proceed, talking to an Atlanta workers’ compensation lawyer – The Law Offices of Nathaniel F. Hansford, LLC may help you shed light on your situation and understand what legal options are available to you to cover your medical expenses and wages that you have lost.

Do all businesses have to carry workers’ compensation insurance?

Although there are different workers’ compensation laws in every state and special laws govern federal employees, every business must have some sort of workers’ compensation insurance that allows them to cover injured employees. Not carrying workers’ compensation may result in an employer facing penalties, fines, and even imprisonment in the state where the business is located.

When an injured worker files a workers’ compensation claim, the process may feel similar to filing an insurance claim. In this case, the worker is not suing their employer but simply requesting benefits.

Is carrying workers’ compensation mandatory?

In most cases, the answer is yes. The law requires that business owners carry these policies to avoid the need for litigation. This is because a worker who receives coverage for their medical expenses and time off for their injuries forfeits the right to file a lawsuit against their employer.

What does workers’ compensation cover?

The workers’ compensation program is run by each state and each state’s laws determine the coverage. It may include the following:

  • How medical care should be delivered
  • What ailments are covered
  • How issues are evaluated
  • What kinds of benefits the injured or ill employee may receive

In general, workers’ compensation covers medical expenses and wages lost in cases of work-related injuries and illnesses. Illnesses may be “related to employment,” which means they depend on the type of industry or business.

What are some specific items that workers’ compensation may cover?

  • Diagnosis and treatment of work-related injuries, including medical and hospital expenses.
  • Disability payments during the time when the employee is not able to return to work. In this case, the pay would be about two-thirds of their usual salary.
  • In cases of permanent injuries, at least a portion of the cost for rehabilitation.
  • In cases where a worker loses their life while on the job, their employer pays death benefits to the family.

Why should businesses choose to have workers’ compensation?

There are several reasons why it makes sense for businesses to have workers’ comp. This is mainly because the cost of workers’ compensation is likely to be less significant than paying for medical treatments for employees that are injured on the job. When an employee is injured or becomes ill on the job, they can claim medical benefits and lost wages through the workers’ compensation policy.

Also, the fact that an employee gives up the right to sue when receiving workers’ compensation helps protect businesses from costly legal proceedings.

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