Workers Comp Insurance - Mandatory Business Coverage

June 20, 2009 | Filed Under Work At Home

by Caressa Waechter

Workers compensation insurance is mandatory in all states nationwide. You may have heard it called ‘workers comp’ for short. It’s insurance that will provide for medical care for an employee should they get hurt on the job. This also protects the employer from being sued by the employee.

Workers compensation insurance can cover more than just accidents on the job. It can cover the worker elsewhere, even if they have an automobile accident while conducting business. It doesn’t have to occur directly on the premises. Illnesses may be covered as well.

This insurance will serve as compensation for an injured worker for the time they spend away from the job. It doesn’t bother with who’s to blame for the injury, it deals more with getting the proper treatment and the proper compensation for the circumstances. Each state has it’s own laws concerning it.

Companies who seek to buy workers compensation insurance, must do so separately from any other forms of insurance they may carry. Business owners policies, or ‘BOPs’, come as separate packages and will not include workers compensation for injured workers. They are not the same, and must be purchased apart from one another.

The whole concept of workers compensation insurance dates back to the beginning of the 20th century. Americans felt the need for workers to be protected from injury, and compensated for any injuries that resulted from their workplace. It was a result of the public outrage for poor working conditions and the dangers that accompanied some jobs.

Workers comp is older than both unemployment and social security insurances. Most state adopted it around 1910 when the state of California implemented it. It’s a type of ‘no-fault’ insurance, where no-one has to prove the liability of the parties involved.

The benefits of workers compensation insurance is more than one might think. There are services that can be had for whatever type of injury that is incurred. There’s vocational rehabilitation services, permanent disability benefits, temporary disability, and many more supportive services that are covered through workers comp.

Any worker who gets injured on the job has a right to treatment. Workers comp will see that they get it. From hospitalization right down to physician care, it’s designed to care for the employee in whatever way is reasonable for alleviating the pain and circumstances. An employer must act within 30 days for arranging treatment.

When looking under Part One of the workers comp policy, you’ll find an agreement by the company to cover all compensation in a prompt manner. The payments are actually ‘imposed’ upon the employer by law. The law in question is ‘Workers Compensation Law’, and if not through that, then it’s done by the laws of the state listed on the policy.

Employers must purchase Workers Compensation insurance from a licensed insurance company. If not, then they must go through the State Compensation Insurance Fund, or the (SCIF). Sometimes a business may take advantage of a commercial broker-agent in order to get assistance with purchasing workers compensation insurance, and with information concerning the SCIF.

Workers Compensation insurance is a law, and a right. Anytime you choose to take a job, you should know whether or not that employer has workers compensation insurance or not. If not, you will have to work there at your own risk. It really doesn’t pay to do this, because accidents happen, and if it happens to you without workers comp, it can be a devastating experience.

About the Author:

If you have employees, then you have to have worker’s compensation insurance. Also knows as workers comp ins, this insurance covers injuries to your employees while working for you.

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The Work At Home Resource Center was created to be a free online resource for people looking to start a home based business or just earn extra money by working at home.