Types of workers comp insurance
workers comp insurance provides benefits to employees who are injured or become ill as a result of their work. This insurance is mandated in most states and covers various types of benefits, including medical treatment, disability, vocational rehabilitation, and death benefits.
Although insurers generally offer standardized workers’ compensation policies, some companies, like The Hartford, offer additional endorsements that can extend coverage. Below is a breakdown of the types of coverage and benefits typically provided by workers’ compensation insurance:
1. Medical Treatment Coverage
Workers’ compensation helps pay for medical care for employees injured or made ill due to work-related activities. This includes:
- Doctor’s visits
- Hospital and emergency room visits
- Medications
- Physical therapy and rehabilitation
- Recovery equipment However, workers’ comp usually does not cover alternative treatments like acupuncture or naturopathic medicine, unless specifically endorsed.
2. Disability Benefits
If an employee is unable to work due to a work-related injury or illness, they may be entitled to disability benefits, which fall into the following categories:
- Temporary Total Disability (TTD): Employee is unable to work for a period but will return to full capacity.
- Temporary Partial Disability (TPD): Employee can work in a reduced capacity while recovering.
- Permanent Total Disability (PTD): Employee is permanently unable to return to any work.
- Permanent Partial Disability (PPD): Employee can return to work, but not at the same capacity as before the injury.
Workers’ comp provides wage replacement to employees during their recovery period or if they sustain permanent disabilities.
3. Vocational Rehabilitation
If an employee cannot return to their original role due to their disability, vocational rehabilitation can provide support. This may include:
- Physical therapy to help regain capabilities
- Retraining or new skill development through education and certifications
- Assistance finding new roles that accommodate their disability, often involving a transferable skills analysis
Typically, vocational rehabilitation benefits are available for up to two years, during which the employee may still receive financial support for lost wages.
4. Death and Funeral Benefits
In the tragic case of an employee’s death due to a work-related injury or illness, workers’ compensation provides benefits to the deceased employee’s family and dependents. These benefits may include:
- Funeral expenses
- Ongoing financial support for the employee’s dependents (such as children, spouse, or elderly parents)
- Lost income replacement for the family members of the deceased
The amount and eligibility for these benefits vary depending on the state’s regulations.
Comparison: General Liability vs. Workers’ Compensation Insurance
While both workers’ compensation and general liability insurance deal with bodily injury, they serve different purposes:
- Workers’ Compensation Insurance: Covers medical and income loss benefits for employees injured or made ill on the job.
- General Liability Insurance: Covers bodily injury or property damage claims made by third parties, like customers or vendors. It also helps settle claims involving issues like libel, slander, or trademark violations.
Although general liability insurance is typically not required by law, it is still recommended to have it in place for additional protection.
Selecting the Right Coverage
Choosing the correct workers’ compensation insurance depends on the laws of your state, as they vary from state to state. If your business operates across multiple states, it’s essential to work with an insurance provider familiar with the regulations in each state to ensure full compliance and proper coverage.
Employers should consider working with an experienced insurer, like The Hartford, to get a personalized quote and to help navigate the complexities of workers’ compensation claims and coverage options.
