What Is Workers Compensation Insurance?

Employers are legally obligated to take reasonable care to assure that their workplaces are safe. Nevertheless, accidents happen. When they do, workers compensation insurance provides coverage.

Workers compensation insurance serves two purposes: It assures that injured workers get medical care and compensation for a portion of the income they lose while they are unable to return to work and it usually protects employers from lawsuits by workers injured while working.

Workers receive benefits regardless of who was at fault in the accident. If a worker is killed while working, workers comp (as it is often abbreviated) provides death benefits for the worker’s dependents.

What Injuries Are Covered?

Injuries employees sustain on the workplace premises or anywhere else while the employee is acting in the “course and scope” of employment are covered if their employer has workers comp insurance. For example, the leading cause of workers comp death claims is traffic accidents that occur when the employee is in a vehicle for work purposes, whether the trip is made in the company’s car or the employee’s own vehicle. Accidents driving to and from work are not covered.

In addition to injuries from accidents, workers comp covers injuries employees may sustain from other events that may occur while they are working, including workplace violence, terrorist attacks and natural disasters.

Workers comp insurance also covers certain illnesses and occupational diseases (defined in the state statutes) contracted as a result of employment. For example, employees who work with toxic chemicals can be made ill by exposure to the chemicals.

Criteria

• indemnity to insured against his liability as an employer to accidental injuries (including fatal) sustained by the workman whilst at work.
• On extra premium-medical surgical and hospital expenses including the cost of transport to hospital for accidental employment injuries
• Liability in respect of diseases mentioned in Part C / schedule III of WC Act on additional premium; which arise out of and in the course of employment.

What basic information the Insurer needs to provide quotation?

• Nature of work / Occupancy
• No. of Employees
• Monthly wages
• Policy duration
• Risk Location Address
• Claim Experience of last 3 years with amount and count of claims