You’ve probably heard this term many times, but what is workers’ compensation? Who does it benefit, and who qualifies?
What Is It?
Workers’ compensation is a kind of insurance to help workers injured on the job or that become ill due to their work. It has a monthly premium that guarantees a certain amount will be paid out in the case of an accident or illness directly caused at or by work. The carelessness or negligence of the worker or the company generally doesn’t affect the amount paid by a workers’ compensation policy. This is called a ‘no fault’ policy.
The exception would be if the employee was under the influence of drugs or alcohol or purposefully tried to injure themselves or others.
Who Is Eligible?
Anyone who has workers’ compensation insurance and is injured on the job should be eligible. To become eligible for a worker’s comp payout, the worker must report an injury or illness to insurance, which then determines if the problem is work-related. This may include going to a doctor to verify the injury or illness. There are also deadlines for paperwork to be filled out and claims made.
Bottom Line
If workers’ compensation insurance covers you, you can be eligible for a payout that will help cover medical expenses and time you cannot work.