Workers’ compensation is required in most states and for most companies that have more than a couple of employees. When it comes to workers’ compensation, the money may come from a variety of places. Here is what you need to know about workers’ compensation and where it comes from.
Is Self-Insurance Possible?
Self-insurance is possible when it comes to workers’ compensation. This is not possible for every company, however. In order to self-insure, the company has to have enough assets to cover workers’ compensation. This is why these companies tend to be large and have plenty of assets to spare. In addition to being a large and wealthy company, the company will undergo supervision. The state has to make sure that the business is treating its employees properly and offering fair compensation when it comes to work-related injuries. The business still has to follow the rules.
What Is a State-Run Program?
A state-run program is a program that provides workers’ compensation on behalf of the state department. The state department ensures that the employees receive adequate benefits for their injuries. In this way, the state department takes place of an insurance company. Employers still have to pay premiums and when there is a claim, the state department will investigate the injury before giving the benefits to the employee.
Who Uses an Insurance Company?
The majority of states give businesses a choice. Either they can utilize a state-run program for insurance coverage or they can use a private insurance company for workers’ compensation. When given the choice, most employers choose private insurance companies. This is by far the most popular choice. One reason that businesses choose private companies is that they are able to customize their coverage. Some industries are inherently more risky than other businesses are.
For instance, if you work in the construction industry, your day-to-day risks are going to be very different from a person who works at a call center. The hazards involved will help shape a workers’ compensation policy. In addition, the dangers involved will serve like a guide when it comes to how much money a worker may need. The types of injuries in each industry are very different.
When it comes to workers’ compensation, most states require employers to have it. The types of coverage that employers can have vary from state to state. Some states have different regulations regarding where you can get coverage and how much you need. Whenever you’re in doubt, workers’ compensation lawyers like a Work Injury Lawyer St. Lucie County at Law Offices of Franks, Koenig & Neuwelt can help answer your questions.