Worker’s Compensation Insurance – How to be Part of the Worker’s Compensation Insurance

June 18, 2023

Worker’s compensation insurance is also like employment compensation insurance. Which is a form of financial security that funds an employee or a worker that sustains an injury in an accident. This is approved by the government to be able to provide benefits to the workers. Follow me let’s talk better about this insurance.

Worker’s Compensation Insurance

Worker’s compensation insurance is the insurance that funds medical care for workers injured from their job or work, sometimes they are given cash benefits for medical care or could be an addition for their injury. This is not free because employers get to pay for their insurance and employees do not need to provide the cost of the compensation.

By law, employers are supposed or mandated to get workers’ compensation. As a matter of fact, every state in the US excluding Texas makes it mandatory or compulsory for companies to get Worker’s compensation coverage.

What is the difference between Worker’s Compensation insurance and Employer’s Compensation Act?

You must come across both of these terms and wonder what is the difference between the two. There is not much difference as both terms are related to work but affect different aspects of work. Workers’ compensation insurance takes care of the expenses of the employee or worker without putting the employee in debt to the company. In other words, the company covers every expense of the injured employee without involving the finance of the employee.

While the Employers Compensation Act is the liability insurance that funds the expenses just in case the employer or worker is punished for disciplinary action.

Another difference is Employers’ liability insurance covers the expenses that are in relation to compensation, hospitalization, medication, and legal costs in the case of an employee suing the company for negligence. While Worker’s compensation will make sure that the employee does not take the issue to court.

How to be Part of the worker’s compensation insurance

In order to be part of the worker’s compensation insurance you have to:

In detail, you give detailed information on the injury or the illness, having photos as evidence. (For further information, you give the names of the witness and their details for verification).
Give a report of the injury or the illness to your employer. Your employer takes the next step by charging your case to the insurer.

Benefits of Worker’s Compensation Insurance

The following are the benefits that workers or employees stand to gain when they are part of the worker’s compensation insurance, which are:

Medical expenses are covered.
Replacement of lost wages.
Recovery cost for injured workers or employees.
Death benefits for employee family.

Are there types of Worker’s Compensation Insurance?

Yes, there are types of worker’s compensation insurance. Once a worker gets injured in the course of a job, then he is entitled to benefits. And the types are medical care, death benefit, occupational rehabilitation, and wage benefits.

What is the Worker’s Compensation Insurance in California?

There are other states that offer Worker’s compensation insurance, but this is the rule that guides the worker’s compensation insurance in California. According to CA.gov, All California employers must provide worker’s compensation benefits to their employees under California Labor Code Section 3700.

Updated information states that employers in California need to obtain a worker’s compensation policy that has the least payment for employer’s liability which are: per occurrence $100,000, per employee $100,000 and the total policy value is $500,000.

What is the Worker’s compensation insurance In the UK?

According to Employers Liability (compulsory insurance), Act 1969 is the act that makes employers’ liability insurance compulsory.

According to GOV.UK, the Employer Liability insurance will help you pay compensation if an employee is injured or becomes sick during the time of service to the employer. You might be fined £2,500 every day if you are not properly insured as an employee.

What are the Worker’s compensation insurance Companies?

There are different available worker’s compensation insurance companies all over the world and we are going to look at some of them. According to the U.S Bureau of Labor Statistics, ten occupations accounted for 33% of workplace injuries and illnesses that resulted in days away from work in private industries in 2019. And the occupations are:

Light truck drivers.
Construction laborers.
Maintenance and repair workers.
Stockers and order fillers.
Janitors and cleaners, except maids and housekeeping cleaners.
Heavy and tractor-trailer truck drivers.
Registered Nurses.
Nursing Assistants.
Retail Salespersons.

Workers Compensation Companies

Let’s look at some of the top companies that you could visit for better information:

Travelers
Hartford
Zurich
Chubb
Liberty Mutual
Berkshire Hathaway Inc
AmTrust Financial
AF Group
Old Republic Insurance
AIG

Frequently Asked Questions

Is there Worker’s Compensation insurance in Nigeria?

Yes, there is. The Worker’s Compensation policy as provided under the Workmen’s Compensation Decree 1987 is meant to provide Compensation to Employees for death or bodily injury by accident or diseases arising in the time of employment.

What is Compensation?

Compensation is the monetary value that is given to an individual in exchange for their service. In the workplace, compensation is what the employees earn at the workplace and it includes salary or wages that is the addition to the commission that comes with the employee’s position.

What is an example of compensation in insurance?

The role of compensation in insurance is that it is used to fund payment for losses that is being covered by the insurance policies. An example of compensation with insurance for workers is worker’s compensation coverage.

What are the four kinds of compensation?

There are four kinds of compensation and the method of compensation is a direct exchange of pay and four different ways of being paid which are hourly payment, salary, commissions, and bonuses.

What Factors could affect compensation?

There are some factors that could affect compensation and the factors are the demand and supply of labor. And this is the most important and effective factor that could affect compensation and if the demand happens to be more than the supply, then the compensation would be higher.