If you have employees in your young business, you are legally required to have workers compensation insurance. This type of commercial coverage is essential for both your company and the employees. In simple terms, the insurance will provide financial benefits to your workers in case they are involved in an accident or contract a disease when working. You and your business will be protected from financial and legal liabilities related to such incidents. If you have recently purchased a cover or are planning to, it is important to understand the different types of claims. Here is a brief description of the primary claims that you are likely to encounter.
Incident and Medical Claims
The most common compensation claims are related to incidents and accidents occurring at work. The insurance will provide financial coverage for the medical care required to restore their health. The costs may include doctor consultation, medicine, and rehabilitation. You should note that both minor and major injuries are included in the insurance coverage. In addition, any incident or accident which is job-related will be covered, even if it does not occur within your premises. For example, if an employee was running a company errand and is involved in an auto accident, the financial coverage will come from workers compensation. Diseases which can also be linked to pertinent employment will be treated as incidents, and the insurance will cover the related expenses.
Wages Compensation Claim
Workers will lose time and, consequently, wages after sustaining an injury during their work. This means that as long as they are sick or injured and unable to perform their duties, they will keep experiencing significant financial losses. Therefore, the affected workers can request for compensation of the money they would have earned if they were in good condition. You should also note that the workers insurance responds to these claims even when they are inked to long-term conditions. For example, if the worker has carpal tunnel syndrome, back injuries or even some sort of disability, they are entitled to lost wages compensation. However, the worker must show the validity of their claim by proving that the disability is related to their employment.
Death can occur due to work-related accidents and illnesses. In these circumstances, the financial compensation is payable to the employee's surviving dependents. The amount is evaluated by based on the employee's earnings within a specific maximum limit, depending on their role, industry and similar factors. The money will pay for the funeral and provide support for the bereaved family.