Most businesses employ people to keep their operations running. However, the moment you hire staff, you must comply with specific employment rules and regulations. One of these is worker’s compensation, designed to protect both the business owner and the employee in the event of a work-related injury or illness. If you want to know more, read on, for this article offers a guide that can help you understand worker’s compensation better.
Worker’s Compensation in Brief
Have you ever suffered a work-related injury? If so, then you may have benefitted from worker’s compensation insurance. Employers must carry workers’ compensation insurance through private insurers or state-funded programs. As an employer, and you opt for the former, ensure that you compare quotes from different providers to get the best deal. When you are presented with a couple of workers comp quotes, take the time to read and understand what is included in the policy you will be paying for. Aside from the cost, compare the coverage and other inclusions to know which quote fares better. From there, you can get the best option for your employees.
-
Key Components
Worker’s compensation insurance comprises several components, including medical benefits, income replacement, vocational rehabilitation, and death benefits. The medical benefits include payment for hospital stays, surgeries, medical treatments, prescription medications, and necessary rehabilitation services. However, you may need to require your employees to seek treatment from a list of approved healthcare providers specified by the insurance company. The death benefits of a worker’s compensation package provide recompense to the family members or dependents of a worker who dies due to a work-related injury or illness.
At the same time, income replacement provides partial wage replacement while the employee is temporarily unable to work. There are also permanent disability benefits that compensate for the permanent loss of your employee’s ability to work due to the injury they sustained. In some instances, your employees may be granted rehabilitation services that offer training and support to help them return to work or transition to a new job if they can’t return to their previous role. They may also be granted job placement assistance to find other suitable employment.
Employer Responsibilities
As an employer, you have several responsibilities to the people you hire, including providing them with a comprehensive worker’s compensation package for their protection. However, aside from this, you also need to provide your employees with a safe workplace, offering them ample training when it comes to using your machines (if applicable) to ensure that injuries and work-related accidents are reduced. If one of your employees needs to claim from the insurance policy, be there to guide them and help them get the compensation they rightfully deserve.
Employee Rights
Your employees have the right to receive compensation for work-related injuries or illnesses without needing to prove employer negligence. They also have the right to receive necessary medical treatment for the work-related injury or disease they acquired. However, in parallel with your employees’ rights, they also have due responsibilities, such as promptly reporting the incident that caused their injuries. Your employees are also responsible for taking reasonable steps to recover and return to work, including following medical advice and participating in rehabilitation programs.
Claims Process
The claims process may prove overwhelming for your employees, who may not be able to focus because of the injuries they sustained. In this case, it is best that you guide them, but you will only be able to do so if you are aware of the necessary steps they have to take. It usually begins with the timely reporting of the incident that caused your workers’ injuries. Depending on your state or region, the timeframe for this may vary slightly. When your workers report an incident, make sure that you ask them for details such as how they sustained the injury, when the incident occurred, and the possible reasons why. You have to include these details in the report that you will generate.
Apart from generating a detailed report that will eventually be submitted to the insurance provider, you also need to initiate the claims process by providing your workers with a claim form they must complete and submit afterward. You must attach this form to the report you will submit to the insurance provider. From there, advise your employee to see a healthcare practitioner that the insurance provider accredits. They will assess the severity of your workers’ injuries and recommend appropriate treatments for them to recover. Tell your workers to keep a copy of their medical records because these can help support their claim later on. They may also need to present the medical receipts showing how much they spent on the treatments.
Once you and your employee submit the documents necessary to initiate a claim, the insurance provider will usually take some time to review them. In some instances, the claim may be denied due to insufficient evidence. If this happens, you can always appeal the decision, but advise your employees to seek the help of a reputable lawyer who can shed light on their options. If you can recommend a legal practitioner who can advocate for your workers’ rights, that would be great. Rest assured that if your workers’ claim is approved, they will be able to get the payout on a regular basis, which may be monthly, while they are being treated.
Challenges and Common Issues
Like any other form of insurance or benefit, worker’s compensation also has challenges and common issues. As previously mentioned, specific claims may be denied due to various factors. Your workers’ benefits may also be disputed, especially regarding disability ratings or wage replacement amounts. In these cases, your employees can seek legal assistance to navigate disputes and ensure fair compensation.
Having one of your employees suffer from a work-related injury or illness can be frustrating. Your staff may be limited from rendering work, and worse, they will be hindered from earning a decent income because of their injuries. Rest assured that worker’s compensation can help your staff get back on their feet as they focus on their recovery. Work with them during the claims process so they can receive the just compensation they deserve.
Photo credits: Pexels, Unsplash