The Coverage Limits of Workers Compensation

Businesses are legally required to have some form of workers compensation insurance if they have employees. If you are a business owner or employee, it is important to answer the question, what is workers compensation insurance and what does it cover?

What Is Covered

Workers compensation insurance is a coverage that companies must carry to provide benefits to employees in the event of an accident or injury while working. If an employee becomes injured due to operations or ill due to working conditions, the business is required to pay for the treatment. The following is a list of what this insurance covers:

Medical payments for treatment

Rehabilitation costs

Death benefits

Lost wages

Disability coverage

What Is Not Covered

While the insurance covers a wide range of needs, it does not cover every incident. There are some situations when the business is not held responsible and an employee cannot file a workers compensation claim. The insurance does not cover claims made by employees if the injury results from the following scenarios:

Self-inflicted harm

The influence drugs or alcohol

Ignoring company policies

Willfully cutting corners

An accident outside of work

Being Prepared for Injuries and Accidents

What is workers compensation insurance? It’s a policy that protects both businesses and employees in the event of an injury or illness as a direct result of working conditions. Understand the coverage limits means you can be prepared for handling a claim if one arises.