Facts Employers Need To Know About Workman’s Compensation

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All states have workman’s compensation laws that require employers who have a certain size of business to provide their employees with workman’s compensation benefits. These laws protect employees against loss of income and cover the cost of medical treatments in case they suffer work-related injuries, accidents or illness. If you are an employer whose business is subject to these laws, you need to be aware of which benefits are payable under a workers’ compensation plan and know the appropriate measures to take in the event of a workplace accident.

It is also important for employers to understand the tax implications and benefits of workers’ compensation plans. Unfortunately, workman’s compensation laws are often complex and some employers do not know the steps they need to take to set up and maintain workman’s coverage for their employees.

8 Elements of Workers’ Compensation Laws

While workers’ compensation laws vary from state to state, there are some common elements of laws in different states. These 8 elements include:

1. In most states, it is not mandatory for employers to get workers’ compensation coverage for their employees. As such, most employers voluntarily participate to provide this type of coverage in order to protect their employees and business.

2. In all states, employees who have workers’ compensation coverage are entitled to statutory benefits from employers if they suffer an accidental personal injury in the course of fulfilling their duties as employees.

3. In some states, under a workman’s compensation coverage plan, employees enjoy wage-loss, death and death benefits. In most cases, wage loss benefits cover between one half to two thirds of an employee’s weekly wage.

4. In most states, employees who are independent contractors are not eligible for workman’s compensation coverage.

5. Under workers’ compensation laws in most states, employees are eligible for compensation irrespective of whether or not their negligence contributes to their workplace injury/accident. Similarly, even if employers are not at fault for an employee’s injury/accident, they still have to pay the affected employees benefits as outlined in their workman’s compensation insurance.

6. In most states, employees who get compensation coverage from their employer give up the right to sue their employer in case of a workplace injury in exchange for the assured benefits of the compensation cover. However, employees often reserve the right to sue third parties whose negligence contributes to a workplace accident or injury.

7. Most states have specific law statutes that dictate whether an employee who suffers an injury at work can receive Social Security Disability Benefits (SSDI) and workman’s compensation benefits at the same time.

8. In some states, injured employees are eligible for vocational rehabilitation benefits if they have a workman’s compensation insurance coverage.


Overall, if state workman’s compensation laws apply to you, you need to familiarize yourself with these laws in order to be able to offer affordable and comprehensive coverage for your employees. Because there is no uniform set of workman’s compensation laws across different states, it is important to contact the relevant agencies in your state to learn the specific requirements in your state before purchasing compensation coverage from an insurance agency.

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