Workers' compensation benefits are an essential part of many employers' policies. These benefits provide financial assistance to workers suffering work-related injuries or illnesses. As an employer, it is essential to understand what workers' compensation benefits are and how they can help protect your business. 

Below are just a few examples.

1. Medical Benefits

There are various stages to filing for workers' compensation. Whenever a worker sustains an accident or becomes unwell because of their work, they must notify their supervisor. In most cases, you, as the business owner, will be the one to initiate the workers' compensation claim. Your insurance carrier will pay for their treatment after an accident or illness if a claim is filed and accepted.

The medical benefits provided by workers' compensation insurance are not limited to deductibles, co-payments, or maximum payouts; however, coverage for allowed treatments may be restricted by some state legislation. For instance, there may be a cap on the number of physical therapy sessions an insurer will cover.

When an injured worker reaches the point of no further medical progress, known as MMI   (maximum medical improvement), their medical bills typically stop being paid. An injured worker's limp and difficulty standing for long periods of time, for instance, may not be remedied by more surgery or physical therapy.

After MMI is obtained, benefits may be capped or restricted to just treatment that aids in maintaining it. An impairment or disability rating may be awarded to the worker, permanent work limitations may be established, and negotiations for a workers' compensation settlement may commence at this stage.

2. Disability Benefits

Disability payments can help make up for missed wages when an employee suffers a work-related accident and is unable to return to work. The amount of lost wages is determined by the employee's earning potential, the nature of the handicap, and the laws of the employee's state of residence. Typically, it's calculated as a percentage of the worker's average weekly salary before the injury.

These disability benefits might make up for a portion of an employee's lost wages while they take time off to heal or get medical care. If an employee experiences a permanent handicap, this workers' compensation award may be available for the rest of their life.

Some states cap workers' compensation disability benefits at a set monetary amount or a number of weeks, or they end when the employee reaches retirement age.

The severity of an employee's disability determines whether they are eligible for short-term or long-term disability benefits.

Temporary Total Disability

An example would be a worker who needs surgery or who breaks a bone but is still expected to return to work at some point.

Temporary Partial Disability

The worker is still able to contribute to the company, although in a reduced capacity or on a part-time basis. A worker who breaks their arm may still be able to do portions of their job.

Permanent Partial Disability

The worker will never fully recover from their injuries but will be able to return to work at a reduced capacity. In the case of a worker who has hearing loss, it is possible that they will still be able to obtain employment.

Permanent Total Disability

The worker has sustained a life-altering injury that will prevent them from ever again performing their previous duties; for example, if they had lost their sight, they would be unable to perform any aspect of their old employment. In certain jurisdictions, such benefits must be paid throughout the rest of the employee's life. In some places, the benefit is provided for a shorter period of time, such as for a set number of weeks or until retirement age.

3. Death Benefits

Death benefits from workers' compensation are comparable to life insurance and are frequently referred to as survivor's benefits. If an employee is killed on the job, their family members may be eligible for workers' compensation benefits. This includes a surviving spouse, small children, and any elderly parents who live in the same household.

Nearly everywhere in the United States, burial and funeral expenditures are covered by death benefits. Also, they might be used to make up for missing wages. In certain states, benefits are paid in a flat sum, while in others, they are distributed over time.

If the employee dies as a result of the work-related injury or sickness, then death benefits may be paid even if it occurs years after the injury. For instance, one worker's deadly cancer may be another's occupational hazard years later.



Conclusion

Anyone considering working in an environment with workers' compensation benefits should be aware of the various benefits that are available. Employers should be aware of the coverage requirements and be prepared to provide information about the benefits available to their employees. Employees should be aware of their rights and understand the benefits that are available to them.

By understanding the main benefits, employers would avoid infringing on any worker's rights in the foreseeable future.

If you are looking for a company that handles workers’ compensation insurance in Alabama, look no further than our services here at The Oakley Agency. We make insurance simple, and our goal is to protect your home, auto, family, and business so you can set your focus on everything else you enjoy in life. Call us today for more information about our various insurance services.