Workers’ compensation insurance is a policy that reimburses injured employees for medical bills, lost income, and rehabilitation costs. It also pays death benefits to the families of workers who die from workplace injuries.
The law requires most businesses to carry workers comp coverage. However, the cost of the policy varies by state.
Pays for death benefits
If your loved one was killed on the job, workers compensation insurance could pay for funeral and memorial expenses and provide income replacement. However, how much death benefits you receive depends on your relationship with the deceased worker and your financial dependence on them.
Death benefits are paid to surviving spouses and eligible children of workers who die from workplace accidents or occupational illnesses. It can be difficult for many families, but financial support from workers’ compensation can make a big difference in your family’s finances.
Survivors must submit a form called DWC Form-042, Beneficiary Claim for Death Benefits, within one year of the employee’s death to get these payments. It can be a complicated process, so it can be helpful to seek the help of an experienced workers’ compensation attorney who has handled these claims before.
In addition, workers’ comp also pays for burial costs. It can be especially beneficial if the deceased worker has many young children or their parents are the remaining relatives. If you or a loved one were killed on the job, you must speak with an experienced workers’ comp attorney to determine if you qualify for death benefits and how to pursue them.
Pays for medical expenses
Workers’ compensation insurance pays all medical bills, prescription drugs, and rehabilitation costs related to your work-related injury. These expenses are also reimbursed for mileage, public transportation, and other necessary travel and equipment incurred during treatment.
The type of injury and severity will determine how much your workers’ compensation coverage will pay for medical bills. For example, an office worker who slips and breaks a leg may be covered for medical bills but not for lost wages. On the other hand, a construction worker who injures a foot or ankle might be entitled to lost wages and income replacement benefits for a few months or even years.
Prescription drugs and medication for other illnesses are typically reimbursed if the injured employee’s doctor prescribes them. However, it is essential to note that some prescription medications are only covered through specific health insurance plans or programs.
Depending on the nature of your injury, you could also be entitled to alternative therapies such as acupuncture, biofeedback, or naturopathic medicine. You can obtain these services from a licensed healthcare provider if they are authorized to treat employees under the Michigan Workers’ Compensation Board.
A physician must submit the bill and prescription to your insurer for these services to be reimbursed through workers’ compensation. In addition, medical bills such as X-rays, CT, and MRI scans are also typically compensated.
Pays for lost wages
Workers’ compensation insurance can assist in paying medical bills and missed earnings when your employees are injured or unwell. It also helps your business avoid lawsuits by reducing liability for these costs.
Most states require businesses to have workers comp coverage, but each state has different rules. For example, some states allow employers to buy coverage for part-time workers and interns.
To receive workers’ compensation benefits, you must give your employer a written notice within 30 days of the injury or illness. The information must include a medical report from a treating physician stating that your disability is work-related.
The worker’s comp insurer pays a percentage of your lost wages if you cannot work. It is called temporary total disability or TTD, which can help you cover your expenses while recovering from an accident or disease.
If you can still perform some duties for your employer, workers comp may pay you a portion of your missed income as disability income benefits (DIB). These wages can make up two-thirds of the difference between what you earned before the injury and what you can now earn.
If you need clarification on whether or not your worker’s comp insurance covers lost wages, talk with an experienced workers’ compensation attorney. They can explain your rights and help you file your claim.
Pays for rehabilitation
Workers’ compensation insurance provides financial benefits to employees who suffer work-related injuries or illnesses. These benefits include medical expenses, lost wages, and vocational rehabilitation.
The type of medical treatment workers’ comp pays for depends on the state’s laws. For example, some medical treatments, such as physical therapy, are covered immediately after an injury, while others, like drug rehabilitation, may require ongoing care to reach maximum medical improvement (MMI).
In addition, workers’ comp may pay for rehabilitative services for a worker’s long-term disability or if a surgical procedure is necessary to treat the workplace injury. However, it’s important to note that rehabilitation costs are capped at a certain amount in most states.
In addition, injured workers are entitled to reemployment benefits. These benefits are intended to help injured workers transition back into the workforce. Employees receive assistance with resume preparation, retraining, and job placement after an injury. They may also be assigned to a vocational counselor who performs a transferable skills analysis, which helps your disabled employee find new employment that suits their abilities and skills.