Accident Insurance benefits

Most employees also provide a number of required or voluntary insurance benefits such as workers’ compensation and health insurance.

Workers’ Compensation provides income and medical benefits to work related accident victims or their dependents regardless of fault.

Worker’s compensation laws aim to provide sure, prompt income and medical benefits to work related accident victims or their dependents, regardless of fault. Every state has its own workers’ compensation law and commission and some run their own insurance programs. However, most require employers to carry workers’ compensation insurance with private state approved insurance companies. Neither the state nor the federal government contributes any funds for workers’ compensation.

How benefits are determined

Workers’ compensation benefits can be monetary or medical. In the event of a worker’s death or disablement, the person’s dependents receive cash benefits based on price earnings – usually one half to two thirds the worker’s average weekly wage, per week of employment. In most states there is a set time limit – such as 500 weeks for which benefits can be paid. If the injury causes a specific loss (such as an arm) the employee may receive additional benefits based on a statutory list of losses even though he or she may return to work. In addition to these cash benefits employers must furnish medical surgical and hospital services as required for the employees.

For workers’ compensation to cover an injury or work related illness, one must only prove that it grow while the worker was on the job. It does not matter that he or she may have been at fault; if the person was on the job when the injury occurred he or she is entitled to workers’ compensation. For example suppose you instruct all employees to wear safety goggles when at their machines. On worker does not and experience an injury while on the job. The company must still provide workers’ compensation benefits.


The employment provisions of the Americans with Disabilities Act (ADA) influence employers’ workers’ compensation procedures. For one thing ADA provisions generally prohibit employers from inquiring about an applicant’s workers’ compensation history, a practice that was widespread before the Act’s passage. Furthermore the ADA makes it more important that injured employees get back to work quickly or be accommodated if their injury leads to a disability. Failing to let an employee who is on injury related workers’ compensation return to work, or not accommodate his or her could lead to lawsuits under ADA.

Controlling Workers’ compensation Costs

It is important to control workers’ compensation claims (and therefore costs). While it’s usually the employer’s insurance company that pays the claim the costs of the employer’s premiums reflects the amount of claims. These costs recently grew by 3.5% overall wages grew by just 2.4%. Workers’ comp claims also tend to correlate with injuries and so fever claims is usually a sign of fewer accidents.

In practice, there are several ways to reduce workers’ compensation claims. Screen out accident prone workers. Reduce accident causing conditions in your facilities. And reduce the accidents and health problems that trigger these claims – for instance, by instituting effective safety and health programs and complying with government safety standards. Furthermore while many workers’ compensation claims are legitimate some are not. Supervisors should therefore watch for typical fraudulent claim red flags including vague accident details, minor accidents resulting in major injuries lack of witnesses, injuries occurring late Friday or very early Monday and late reporting.

It’s also important to get injured employees back on the job as fast as possible, since workers’ compensation costs accumulate as long as the person is out of work. Many firms have rehabilitation programs. These include physical therapy; career counseling to guide injured employees into new, less strenuous jobs, and nursing assistance to help reintegrate recipients back into your workforce.

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