Workers' compensation insurance aims to help you cover the costs of employee injuries or disease. It is a fundamental type of business insurance from which most companies can benefit. In some instances, it can be hard to understand what the coverage is and how it works. There are a few key points to consider about this coverage. Take a look at the three ways workers’ compensation covers your business.
#1: Medical-Only Coverage
The first type of workers’ compensation benefit is medical-only. This coverage occurs when the policy pays for the worker’s medical costs after an incident. Most policies also have the ability to pay for the worker’s lost time at work.
There may be a delay in when this kicks in. For example, most policies require a three- to five-day waiting period. After that, the policy starts to pay. This is one of the most common benefits.
#2: Temporary Disability
Another way your policy can help is with temporary disability coverage. This is one of the most common types of benefits paid by workers’ compensation. This type of coverage provides a payment to your worker who is unable to work. It applies only when the employee suffers an injury or illness as the result of a work-related task. Yet, when a worker improves and goes back to work, this benefit stops.
Sometimes, the employee may come back to work before being fully recovered. Therefore, you might have to make other accommodations. This may mean fewer hours or duties. If this occurs, partial, temporary disability may help if the worker is not receiving full compensation.
#3: Permanent Disability
In some cases, the worker cannot come back at all. These cash benefits go to workers who can no longer do their job. It only applies in situations where the worker’s injuries relate to work tasks. Beneficiaries are likely to have some form of impairment that is not likely to resolve. That's when this coverage will kick in.
Some individuals receive partial total disability. This can happen when the individual cannot perform his or her duties, but can still work in some capacity.
Workers’ compensation offers a variety of protections. Without it, your company may have to pay these costs out-of-pocket. That tends to be very expensive. Work with your Oklahoma City business insurance agent to know if your policy offers all levels of risks.