Stats & Facts: 5 Workers Compensation Facts That’ll Probably Surprise You

Bringing your first hire into your business is an exciting step. However, it brings with it many unforeseen expenses. If you’ve just gotten a workers compensation insurance quote that’s higher than you expected, you might be tempted to let that expense slide for a while. However, that would be a monumental misstep.  

Accidents happen, even in jobs that seem thoroughly safe. The last thing you want is to be stuck with medical bills, fines, and possibly even lawsuits. So, get a policy as soon as you make that first hire. If you need further convincing, check out these five workers’ compensation facts that will probably surprise you: 

1. Most States Require It

In America, most states require that you have Workers’ Compensation Insurance if you have even just one employee. The coverage allows them to make a claim if they suffer injuries or other health problems as a result of working for your company. 

The insurance should cover death, loss of body parts, serious illness, disability, medical bills, and wages, but every policy is different. The rules also differ from state to state, so it’s crucial to check your local laws and ensure you’re properly covered. 

2. Timeliness Is of the Essence

Some policies require that a claim is made within as little as a week after an accident has happened. Employees are responsible for approaching their employer to make a claim and ensure wages are covered for any lost time. 

If an employee doesn’t report the incident in the time specified by the policy, they may be ineligible to make a claim. Employers must also lodge claims quickly. Fail to do so, and you could be liable to pay wages while the employee is off work – wages your insurance provider would otherwise have covered. 

3. You Need to Keep Clear Records

The more information you can gather, the smoother the claims process will be. For this reason, many businesses have paper trails demonstrating their use of risk assessments and clear safety procedures. This can support any insurance claims and protect the employee and the employer from fines and lawsuits. 

Only 15% of employee claims against employers are won, but that’s still not worth the risk for any business, especially when insurance and health and safety practices can ensure the best protection for everyone. 

4. Workers’ Compensation Doesn’t Cover Pain or Suffering

You may be surprised to learn that pain and suffering caused by injury or illness in the workplace is not relevant in terms of the workers’ compensation policy. A personal injury lawsuit might compensate for these factors, but workers’ compensation only accounts for lost wages, medical expenses, and specified disabilities. 

5. Your Prior Medical History Matters

Over 133 million Americans struggle with at least one chronic illness, and if your employee is one of them, it may become part of the claim process. They may be asked to supply information about their medical history within a certain amount of time prior to the relevant incident. In many cases, if it is not clear that the workplace situation caused or worsened the problem, compensation may not be given. 

If you are unsure about workers’ compensation, speak to an insurance provider directly to find out more. It’s an area that requires some upfront research to ensure the details are correct. However, it’s crucial not to skip this step, as your policy