The dangers associated with industrial manufacturing became apparent soon after the rapid growth of in the early twentieth century. Heavy machinery, chemical use, and other hazardous materials caused many workplace-related injuries, and the lack of a system to compensate the workers created mistrust between employers and employees. Due to this undeniable fact, it has become essential for every business owner to consider the option of workers compensation associations.
What is Workers’ Compensation Insurance?
A worker’s compensation is a type of insurance that is provided to the employees who have received severe injury due to the negligence of his employer. This type of insurance covers all costs associated with workers’ injuries such as permanent disability or death, rehabilitation, medical bills, and lost wages. The State’s Workers’ Compensation Regulatory Commission set the benefits under a workers’ compensation policy.
The eligibility criteria and specific coverage for workers compensation insurance vary. For example, there are those packages that extend to the worker’s family in case the employee sustains a long term injury. Employees injured while handling business outside of the workplace may also be liable to receive an award under the program. This includes employee injured while making a delivery for his company.
This is why it is recommended to check out the details associated with the program according to the one you desire. These laws are only applicable to government employees and those individuals involved in interstate commerce.
So How Does Workers’ Compensation Work?
In the event of an illness or occupational injury, the harmed employee is allowed to file a claim for workers’ compensation benefits. The workers’ compensation associations will evaluate this claim, and if it is approved, then payments will be rendered for costs incurred by medical care and lost wages associated with the injury. There is no consideration given to which party is at fault, but occasionally the insurance company will attempt to deny a claim on spurious grounds to boost its profits and violate the rights of an injured worker. Depending upon the circumstance under which a claim is rejected, it may be appropriate to file a suit for workers’ compensation fraud.
Are Owners covered under a Workers’ Compensation Policy?
The owners have the choice to include or exclude themselves from coverage. In other words, they are covered only if they want to be. If they are included, then they are also entitled to the benefits in case they are injured. Remember, if you choose to be included, then your payroll would also be included in the calculation of your workers’ compensation premium. The most common legal ownership entities used by businesses are:
1. Individual ownership or sole proprietorship – in this case, the individual, their spouse, and their resident relatives can be excluded from coverage.
2. Corporation – All shareholders who are also officers can be excluded, only if the officers own 100% of the stock of a corporation. Officers who do not have shares or shareholders who are not officers cannot be excluded as well as spouses and relatives.
3. Partnership – All partners can be excluded, however, spouses and relatives cannot be excluded.
The filing process for workers’ compensation benefits can be confusing and complicated. A slight mistake can create procedural grounds upon which your claim may be denied, holding the money and medical treatment that you require out of the reach of your family.
For help with claims, speak with experienced workers compensation associations. A good company will safeguard the workers’ interest and be able to quickly understand the details of your case and get to the core of the problems that you are facing. The benefit will cover the financial losses that result from the inability to work after the accident or injury.