What is Workman’s Comp Insurance and Benefits?

Workers often get injured while on their jobs, this is especially true while working in manufacturing sector. When these injuries happen because of negligence of the employer they are liable for Worker's compensation. Workers compensation insurance is a type of insurance where the employer provides with wage replacement and medical bill reimbursement to the worker which have been injured due to their negligence. In general this is to ensure that the worker does not sue them instead.

To safeguard the financial interest of the employer, Workman’s comp insurance provides coverage to the worker against the injury on job. This coverage is extended to the wages anticipated to be earned by the worker if one has been working. There are certain limitations where workers may not get the desired coverage but in case of a serious injury, household bills and other monetary requirements can be fulfilled under the policy coverage guidelines.  Thus indirectly, the insurance company funds the expenses incurred by the employer. 

There is a specific variation in the plans but there are provisions like:-

  • Disability insurance for weekly imbursements in lieu of wages
  • Reimbursement for past and future economic loss
  • Reimbursement of medical expenditure in terms of health insurance
  • Life insurance for payable benefits in case of worker’s death.

Benefits of Workman’s Comp Insurance

There are different compensation schemes for workers in every state. All in all, there are some common types of workman’s comp insurance in all the states which are stated as below:-

Medical Benefits Coverage : Workman’s comp insurance provides specific medical benefits if worker becomes injured on job. There is no cost or deductible to be incurred by the workman.

Temporary Total Disability Coverage : This coverage is applicable for workmen whose injury led him to total disability. However, he cannot work but can return back to work after improving from the injuries. Instead of total coverage, a percentage of workman’s wages are paid under this policy.

Permanent Total Disability Coverage : If workman comes across a permanent injury restricting him from working again forever, then he is eligible for permanent total disability coverage. There is complete compensation to the workman for his particular disability. 

Permanent Partial Disability : If workman suffers a permanent injury which may restrict him from working for particular interval of time but reduces his working capacity, then he is legible for permanent partial disability coverage. Loss of a physical part can be considered as a case of permanent partial disability. The compensation benefits consist of the reimbursement for workman’s loss.

Benefits of Workman’s Comp Insurance for the employer : In case of the employer the primary benefit is due to sharing of the financial burden derived due to Workman's compensation. While workman's compensation insurance does not cover the whole of workman's compensation, it does takes of significant burden off the head of the employer.

Benefits of Workman’s Comp Insurance for the employee : A workman’s compensation insurance includes reparation of lost wages for medical care, treatment expenditure and disability coverage. There is another privilege for workman’s getting injured or taking ill while working. They are liable to get partial or full coverage under their employer’s comp insurance. Moreover, there are death benefits for dependants if any of their family members get killed during the job. There are various benefits of workman’s compensation insurance to the employee. and they are:-

workmans insurance

  • Medical Care : Medical care include reimbursement of medicinal and hospital expenses which are obligatory for treatment of injury and illness. General compensation benefits include coverage for doctor visits, diagnosis, medication and surgical procedures. There is additional coverage for special vehicles or wheelchairs if there is a need for equipment. There can be certain cases where workmen need counseling, acupuncture and pain therapy which are covered under this insurance. At the same time, there are some restrictions over the investigative or experimental therapy where employees may need to take the assistance of the attorney.  
  • Rehabilitation Coverage  : When there is a need for therapeutic or medical care for total recovery from illness or injury, then workmen are entitled to get rehabilitation benefits. There is extensive coverage for training and care where workmen need to regain their abilities as well as skills for returning back to their job. If they cannot return back to their job, then rehabilitation benefits pay for reevaluation, retraining, coaching and other relevant expenses for becoming capable enough to get another job.  
  • Disability Coverage : Disability benefits are required to reimburse the lost wages if injured or ill workman is not able to make earnings due to inability to work on temporary or permanent basis. Disability can be segmented into four parts which are temporary total disability, temporary partial disability, temporary total disability and permanent partial disability.

Major Companies Providing Workman’s Comp Insurance

There are many major insurance providers for workman’s comp and they are:-

State Compensation Insurance Fund

State Compensation Insurance Fund is one of the largest workman’s comp insurance providers. They were established in 1914 by the state legislature of California. They have over 150,000 insurance holders with $20 billion in assets and $1.2 billion in premium. they are diverse and equal in their approach by providing similar opportunities to employers, brokers, medical providers and employees.  

Chatwin Insurance Services

Chatwin Insurance Services was established in California and they are proudly offering workman’s comp insurance to the employers as well as employees. Employers are covered against the loss of a capacitive worker whereas employees are covered with compensation for wage loss while getting injured on job. They cover the wage loss for workmen if they could not work due to injury or illness for a minimum period of four days. However, first three days are not covered in their generalized insurance plans but these three days will be covered if workman could not work for more than 2 weeks. Chatwin Insurance Services provide coverage against permanent disability, temporary disability, supplemental job displacement advantages and death benefits.