What’s Workman’s Compensation Insurance?
Looking at the hazardous effects and injuries sustained by workers at the production facilities, construction sites, and many other working environments.
We came to realize that most industrial and construction workers can’t even offset the treatment bills, an avenue has been created by insurance companies through which such an unfortunate event can easily be resolved and the injured person gets compensation immediately.
Workman’s compensation insurance provides cover for injury, disease, or death of employees that arises in the cause of work for the employer. It is the employer who compensates the victims.
This is one of the reasons why some employers take up insurance to cover themselves against such unfortunate occurrences. In fact, Workman’s compensation insurance is a type of social insurance privately financed. However, it is a compulsory insurance for most employers.
It does not offer compensation for the damage to the employee’s property. It is often regarded as employer’s liability insurance. Workers’ compensation statutes are intended to eliminate the need for litigation and the limitations of common law remedies by having employees give up the potential for pain- and suffering-related awards, in exchange for not being required to prove legal fault on the part of their employer.
Designed to ensure employees who are injured or disabled on the job are not required to cover medical bills related to their on-the-job injury, the laws provide employees with monetary awards to cover loss of wages directly related to the accident as well as to compensate for permanent physical impairments.
Reasons for workman’s compensation insurance
The following are the major reasons for workman compensation insurance
a. To provide wage replacement and medical benefits to employees injured in the course of carrying out their employment duties.
b. To help the employers cover themselves against any mishap that may occur to their workers. and this is one of the reasons why it is compulsory for most employers.
c. To cover the statutory liability of an employer for the death of or bodily injuries or occupational diseases sustained by the workmen arising out of and in course of employment.
d. To minimize the adverse effects of employer’s liabilities.
State law requirement for workman compensation insurance
Workers’ compensation is insurance that employers must carry. It provides a replacement for lost wages, plus coverage for medical expenses for any employee injured on the job.
This is good news for the worker. The employer also benefits because when the business purchases coverage, the employee loses the right to sue the employer for a work-related injury while the workers’ compensation policy is in force.
Because the system protects both parties and limits legal recourse for such injuries, it is sometimes called the ”compensation bargain.”
What workman compensation insurance covers include
the state has its own plan, but here are some benefits that are generally included:
- Medical treatment for work-related injuries
- Treatment for occupational hazards such as exposure to disease.
- Temporary disability
- Permanent disability
- Permanent impairment, such as the loss of a limb
- Death benefit for payment to survivor dependents
- Employer liability where the employer is liable for injury to a third party
Compensation bargain: This is the trade-off engagement between the assured, limited coverage and lack of recourse outside the worker’s compensation system. It helps to avert the challenge of employers becoming insolvent as a result of high damage awards
Most people may not have paid much attention to workers’ compensation insurance until now, after suffering a work-related injury and are in a position to file a claim.
This is because most workers are unaware that it is their primary right to file a claim against the employer who fails to compensate them against any form of injuries sustained at the cause of discharging their duties.
However, workman compensation insurance in the present-day business has acted as an eye-opener for such workers. It is the policy that covers the statutory liability of an employer for the death of or bodily injuries or occupational diseases sustained by the workmen arising out of and in course of employment.