For example, you will be covered if you're hurt while traveling on business, doing a work-related errand, or even attending a required business-related social function. Learn more about what does and doesn't count as a work-related injury or illness.
Workers' compensation covers most work-related injuries—but not all. Generally, workers' comp doesn't cover injuries that happen because you were intoxicated or using illegal drugs. Coverage may also be denied for injuries that were self-inflicted including injuries that happened in a fight that you started or happened while you were committing a serious crime or doing something that violated your employer's policies.
Your injury need not be caused by an accident—like a fall from a ladder—to be covered by workers' compensation. Many employees receive compensation for injuries resulting from work activities over a long period of time, such as repetitive stress injuries or chronic back problems. Depending on the circumstances and your state's laws, you might also receive benefits for some illnesses that you developed because of your work. But there are special rules for workers' comp eligibility for occupational diseases.
Depending on your state and the kind of work you do, you might be able to get workers' comp benefits for COVID Generally, however, it can be very difficult for most employees to prove that they contracted the disease because of workplace exposure to the virus.
For infectious diseases like COVID, you typically must demonstrate that the particular nature of your job put you at a higher risk compared to the general public or other workers, and you need evidence showing you were actually exposed to the virus at work. But some states have made it easier for certain frontline workers to qualify for workers' comp benefits when they get COVID Workers' comp does pay for medical expenses that are necessary to diagnose and treat your injury.
But it also provides temporary disability payments while you are recovering and unable to work, as well as compensation for permanent impairments caused by your work-related injury or illness more on that below. Depending on the state and the injury, it may also pay for rehabilitation, retraining, and other benefits. Learn more about types of workers' comp benefits. The actual amount that you receive in workers' comp benefits depends on a number of factors, including the laws in your state, the nature of your injuries, and how much you earned before you were injured.
For temporary disability benefits —payments intended to replace part of your wages when you can't work while you're being treated for your injuries—most states pay about two-thirds of your average pre-injury wages, up to a maximum that varies from state to state and from year to year. Permanent disability benefits are usually determined by a complicated formula in state law that's based on which part of your body is affected and the extent of your impairment.
See our state-specific articles on workers' comp benefits for more information on how benefits are calculated in many states. First of all, not all employers are required to have workers' compensation coverage. Schedule a free case review. Search for:. Contact us for a FREE consultation. Are you a new client? Yes, I am a potential client No, I am a current existing client I am neither. You might be using an unsupported or outdated browser.
To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. Get a Policy in Under 10 Minutes. When employees become injured or sick because of their work, workers compensation insurance pays vital benefits to those employees.
Workers compensation benefits include medical treatment and on-going care, payments to cover lost wages and even death benefits. In most states, businesses are required to buy workers compensation for their employees and just having one employee can be enough to trigger a workers comp requirement. Workers comp benefits are paid no matter who was at fault. And workers compensation laws typically prevent employees from suing their employers for a work-related injury or illness.
Need to buy workers compensation insurance for your employees? Private workers compensation insurance companies set their own prices and approve or reject customers. You may get a better price from a private insurer than from a state fund.
If you are not able to purchase the workers compensation coverage that you want from a private insurer, you may want to check out a state-funded program. In a competitive, state-funded workers comp program, private insurers and state-funded programs compete for customers.
In monolithic, state-funded workers comp programs, businesses have no choice but to get workers compensation coverage from a state-funded program. Ohio, North Dakota, Washington and Wyoming are examples of states with monolithic state-funded programs for workers compensation.
Workers comp premiums are based on the job classifications of employees and these classifications reflect the riskiness of the job. For example, a construction worker or electrician would be considered high-risk jobs. Health Insurance. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.
These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. Workers' Compensation Coverage A. Understanding Workers' Compensation Coverage A. Special Considerations. Part A vs.
Part B. Example of Coverage A. The Bottom Line. Key Takeaways Workers' compensation coverage A protects employees under state laws. It provides medical care, death, disability, and rehabilitation benefits for workers who are injured or killed while on the job. The benefits of workers' compensation are generally awarded on a no-fault basis. Premiums are based on the employer's payroll and the type of duties its employees perform. Workers' compensation B includes workers' compensation A coverage but covers employees when the employer is liable through negligence or otherwise, paying out additional damages.
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