workers compensation

Understanding Worker’s Compensation

According to the U.S. Department of Labor Bureau of Labor Statistics, nonfatal job related illnesses and injuries numbered just under three million in 2014. While lower than in previous years, it still underlines the need for employers to carry workers compensation (Workman’s Comp.) insurance, indeed, it is mandated by the state. Programs and laws relating to workers compensation vary in each state, but workers can expect the following similarities.

Who is Covered?

Whether you’re covered by workman’s comp. depends a number of factors:

  • The number of employees
  • The type of business
  • The type of work

Not all businesses are required to provide workers compensation and each state has certain worker exclusion that may include seasonal workers, domestics or farm workers.

What is Covered?

Most injuries that occur on the job are covered by workman’s comp. except those resulting from the following:

  • Illegal substance use
  • Injuries that are self-inflicted (including those from starting a fight)
  • Injuries sustained in the commission of a crime
  • Conduct in violation of company policy

Coverage includes payments of hospital and medical expenses for both diagnosis and treatment and in some cases, disability, rehabilitation and retraining are also paid for. Because coverage varies in each state, check with your state’s worker’s compensation office for the most accurate information.