Workers Compensation Management Basics

Workers compensation management is a significant issue for businesses large and small, especially in today’s economy.  Knowing the policy basics and how it works can make a big difference in how you handle a situation at your company.  While the policy does differ state by state, some basic principles do apply.  Here are some simple commonalities across states that will help you understand the rudimentary concepts of workers compensation.

Any companies’ workers compensation policy requires input from both management and staff.  The basis of workers compensation management is that of a no fault system.  Under workers compensation policy, employers aren’t able to defend the company against employees in certain ways while employees aren’t able to sue their employers under those laws.  Since it is a no fault system, employers can ensure their workers are covered and speed up the claim process.  The reasoning behind this is that by providing a distinct and separate process that prevents lawsuits, the actual cost to provide the workers comp benefits stays low enough to allow employers to provide it to all staff.

In general, workers compensation management insurance will likely cover any medical treatment to an employee injured in an on the job accident, the liability incurred by an employer in the event where damage occurs to a third party, any occupational illnesses such as exposure to disease or pathogens, temporary disability payments, permanent impairment compensation, complete disability payment and even death benefits to surviving dependents.  While the laws do change state by state, the above are the most commonly seen elements of a workers comp program.

Workers compensation insurance is exclusively paid for by the employer and is required by state law.  While this may seem slanted in favor of employees, workers comp is truly to the benefit of management as well as employees.  Having the insurance is really the guarantee that the company cannot be sued by the employee for the injuries in most cases.

There are some workplace accidents and injuries that are not automatically covered by workers compensation insurance and may leave employees liable for their injuries as well as difficulty with their employer.  In general, this includes injuries that occur off the job, any self- inflicted injuries, injuries involving drugs or alcohol, injuries incurred while the employee was in violation of company policy, injuries that occur after an employee is laid off or separated from the company, and any injuries that are inflicted by a fight started by the employee.  In addition, any injuries that occur during the commission of a felony even while on work time are not covered by workers comp.

To learn more about workers compensation management, be sure to look up the details of your state’s law to see what is and is not covered by workers compensation insurance.

For more information:

http://www.incentives-solutions.com/solutions-2/employees-performance/