As a business owner, it's important to make sure that your employees are covered by workers’ compensation. Luckily, if you choose the right plan, you can be sure that employees will be entitled to a sizable payout if they're ever injured on the job.
So, what is workers' compensation coverage? How can you get it? This guide will help you to find out, and it's important to note that there are significant differences from one state to another.
Here's what you need to know about workers' comp coverage.
The specific process that will need to take place varies significantly from one type of workers' comp coverage to another, but there are some common elements of the process that you should be familiar with. Here are the steps that you can typically expect:
Workers' compensation settlements can be very quick. In some cases, it will only take around 72 hours for your employee to have their claim approved and receive compensation. However, the process is usually not quite that fast. In some cases, there may be multiple appeals needed, and it can take as long as two years before your employee's claim is finally approved.
After the claim gets approved, funds will quickly be transferred to the injured worker. If the settlement occurred outside of court, this transfer will go directly from the insurance company to the injured employee. There will be no need for an intermediary to oversee the process.
However, if the settlement occurred during a court hearing, a judge will preside over the hearing.
As an employer, you need to have a team of reliable and healthy employees. Unfortunately, if an employee is injured, you could easily end up short staffed. Fortunately, return to work programs offer a solution to this problem.
These programs are set up by employers, and they allow workers to return to the job in an altered or limited capacity while they're recovering from their injuries.
Not only is this beneficial to you in the short term, but there are other benefits for you, as an employer. These programs can help to improve the morale of the injured employee, which can help to ensure that they remain just as dedicated to their job. Furthermore, it can allow you to offer financial security to your workers, which will help you to attract a higher caliber of employee.
The worker also will not lose their job skills after their injury. This will help to ensure that they're likely to stick with the job, which will save you a considerable amount of time and money that would otherwise be spent looking for a new employee to fill the position.
These programs also reduce the risk of being subjected to litigation as an employer. This can be extremely costly and create a huge hassle for business owners of all types. Luckily, we offer exceptional general liability insurance coverage to protect you.
The claim is closed after the employee receives the compensation that they are entitled to. Furthermore, the worker will need to have returned to work in order for the claim to be closed successfully.
There typically will be a process of negotiations between the insurance provider and the employee who was injured, which will determine the precise amount of compensation that the employee is entitled to.
Here's how this process works:
There are several key factors that will be taken into account. While the specific factors that will go into determining the settlement amount varies from one insurance provider to another, these are a few examples of things that will always go into determining how much the employee is entitled to:
There are a number of factors that are frequently overlooked when settlement amounts are being determined. For instance, if the employee had to be taken to the hospital in an ambulance, this will create an additional expense. As a result, they will be entitled to compensation to cover this cost. Physical therapy and doctor's appointments after the injury also need to be taken into account.
As an employer, you do not have a major role during this process. That's because the negotiations primarily involve the employee and the insurance company. The employer plays a minimal role in the process at this stage. However, you will have a key role earlier in the process, which is because you'll need to ensure that the insurance claim is properly filed.
The purpose of the hearing is for both sides to be heard in court (e.g. the insurer and the injured employee). Not only that, but it can help to ensure that the compensation is fair for both parties.
The judge will order the amount that is considered fair to both parties, which makes taking the case to court inherently risky for the employee and the insurance company.
As a result, most insurance companies and injured workers will make every possible attempt to settle the case out of court. Not only can the amount that the judge feels is fair be highly unexpected, but the attorney fees associated with taking a workers' compensation case to court can be quite significant. In some cases, it can cost many thousands of dollars.
The insurer that you choose will have a major impact on whether a court hearing is necessary. While all insurers will attempt to settle the case out of court, they vary considerably in terms of how successful they are likely to be while doing this.
Some insurers will stick to unreasonably low payouts during the initial negotiations process, which usually leads to the expense and hassle associated with a court hearing. As a result, it's essential to ensure that you choose a reputable insurance company for workers' compensation coverage.
Unfortunately, the answer to this question is no. There are situations when you are likely to be denied a settlement. These are a few examples of circumstances that are unlikely to lead to a successful settlement:
In some cases, the answer to this question is yes. You can find out more about how to determine if your business is exempt from having to offer workman's comp. Furthermore, it's a good idea to look at a workers' comp settlement chart to determine how much coverage you'll need in your state.
If you choose CoverWallet for coverage, you can count on us to offer sizable payouts for employees, and it will be easy to work with us as an employer. We make the process of filing a claim exceptionally easy, and this is part of what makes us the best choice for both small and medium sized business owners.