Domestic Workers Compensation
Most states have laws requiring employers to provide workers compensation insurance for any full-time employees, including domestic employees . Although some states do not require workers compensation insurance for part-time employees, the employer can still be held responsible for injuries sustained while the employee is working. Workers compensation provides compensation for injuries sustained at work, without regard to fault, in the form of scheduled benefits that vary depending on the nature of the accident.
Reasons for purchasing workers compensation Insurance:
- Reduces the possibility of being sued by an employee, as the right to sue is generally waived in order to claim the scheduled benefits.
- Protects the employer from a health insurer that might decide a claim it paid was really work related, and pursue the employer for reimbursement.
- Provides lost wages and medical costs if an employee is badly injured.
- A homeowners policy is not a substitute for workers compensation insurance. There may be some coverage for injuries, but there may not be coverage for lost wages. In addition, workers compensation insurance is paid almost immediately, while the homeowners policy will typically provide reimbursement at a later date, after a claim has been are submitted and evaluated.
Workers compensation laws were created to ensure that employees who are injured on the job are provided with fixed monetary awards. This eliminates the need for litigation and creates an easier process for the employee. It also helps control the financial risks for employers since many states limit the amount an injured employee can recover from an employer.
Workers Compensation Insurance is designed to help companies pay these benefits. As a protection for employees, most states require that employers carry some form of Workers Compensation Insurance. Workers Compensation Insurance is not health insurance. Workers Compensation is designed specifically for injuries sustained on the job.
In most states, if you have employees, you are required to carry Workers Compensation coverage. Even in non-mandatory states, it can be a very good idea, particularly if you have many employees, or if they are engaged in hazardous activities.
Do I need workers compensation insurance?
Employers have a legal responsibility to their employees to make the workplace safe. However, accidents happen even when every reasonable safety measure has been taken.
To protect employers from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income to employees hurt in workplace accidents, in almost every state, businesses are required to buy workers compensation insurance. Workers compensation insurance covers workers injured on the job, whether they're hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.
Workers compensation provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitation services. It also provides death benefits to surviving spouses and dependents.
Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved.
Workers compensation insurance must be bought as a separate policy. Although in-home business and business owners policies (BOPs) are sold as package policies, they don't include coverage for workers' injuries.