Workers Compensation Insurance Policies

Understanding Workers Compensation Insurance

If you have employed workers in your business, state law probably requires you to purchase a worker’s compensation policy. Also known as workers comp, this policy consists of a declarations page, various endorsements, and a policy form. It may also have one or multiple schedules like a list of locations.

Depending on the type of business you are operating, your company is assigned one or many classifications on the workers compensation policy. For example, if you operate and manage a hardware store which sells items to retailers, your business will be classified as a retail hardware store.

The monthly premiums you are obliged to pay for this coverage will depend on your business classification. Premiums are also determined by your workers’ payroll and the rates that are charged by each classification. Employees may receive payment if their injury or illness is related to their employment or job duties. Workers comp laws differ in each state. However, employers must follow the law.

Workers Compensation Coverage Types

Workers compensation coverage provides financial help to employees who have sustained injuries while working. An employee is compensated regardless of who is at fault. The injured worker does not need to sue the employer for negligence for him/her to be compensated.

Furthermore, an injured employee may still get benefits even if his/her carelessness caused the injuries.

Workers compensation insurance includes the following coverage types:

Medical Coverage
Disability
Vocational Rehabilitation
Death Benefits

Medical Coverage

Workers compensation medical coverage is usually unlimited without deductibles or copays. Benefits are made available until the injured employee has fully recovered. Although medical coverage is different in each state, benefits include:

Hospital Care
Nursing Care
Doctor Visits
Medication
Medical Diagnostic Tests
Physical Therapy
Medical Equipment (Wheelchair and crutches)

Disability

Disability benefits compensate you for lost wages because your illness or injury made it impossible for you to work. The benefits fall under one of the following categories:

Temporary Total Disability
Temporary Partial Disability
Permanent Partial Disability
Permanent Total Disability

Temporary Total Disability

This disability prevents you from working totally, but only for a limited period. You may fully recover and work in the future. Most states have time limits for temporary disability compensation. The majority of employees fall under this category.

Temporary Partial Disability

Temporary partial prevents you from working as usual for a limited period, but you can work a little. For example, your doctor may allow you to work for four hours a day while you recover from your injuries. Most states will compensate you for the hours that you won’t be working.

Permanent Partial Disability

Permanent Partial means that you are suffering from permanent damage. The damage usually results from an injury that causes you to be less productive at work. Most states limit how long the payments go on.

Permanent Total Disability

Permanent total disability means that the permanent damage is so severe that you can’t continue working. The rules for determining permanent total disability are complex and differ in each state.

Vocational Rehabilitation

Vocational rehabilitation enables employees who are unable to return to their jobs to learn new skills based on what they can do currently.

Death Benefits

Spouses and minor children of an employee who is killed while working are compensated under death benefits.

If you need insurance for your organization our headquarters is in Scottsdale, AZ, but our staff and agents are licensed in multiple states across the country.

Workers Compensation Insurance Policies