What Are The Benefits of Having Workers Compensation Insurance?

Workers compensation is a type of insurance that provides employees with payment for lost income and medical expenses due to some type of job-related illness or injury. It is a way of protecting company employees by guaranteeing that in the event of a work-related injury or sickness, they will receive compensation. How Employers Benefit From Having Workers Compensation Insurance Employers who pay into their state’s workers compensation insurance program are also provided with some vital coverage. By paying into the fund, employers are absolved of any liability for claims an employee might wish to file. In addition, employers are afforded specific legal protections that grant them immunity from lawsuits based on an employee’s injury. State Mandates States require employers to pay these benefits and employers must have proof that they have the financial resources to cover the cost of any potential claim. The usual way that employers prove this is by purchasing workers compensation insurance. Employers are legally obligated to participate in their state’s program, although there are some exceptions. Those few exceptions vary by state. Self-Employed Workers Compensation Insurance Self employed people don’t have to have workers compensation insurance, but in some places, there may be provisions that allow self employed workers to "opt in" as self employed business people. Having this coverage means that a person who is self-employed will be able to get insurance to cover the costs of treatment for illness or injury. Even if your state doesn’t require that you have workers compensation insurance, having it is a good idea, and it provides you with a guarantee of protection should something happen. Workers Compensation and Small Businesses Sometimes small business owners fail to see the benefit of workers compensation. They think of it as an overhead expense, and unless and employee is injured or gets sick because of the job, they never see the benefit. Types of Workers Compensation Insurance Benefits Workers Compensation provides coverage in four different ways.

  • Death benefits provide payment for some of the wages a family loses because of a job-related death.
  • Workers compensation insurance may provide burial benefits to help with some of the expenses related to the cost of a funeral.
  • Medical benefits are designed to cover the cost of medical care and treatment for a job-related illness or injury.
  • Income benefits are designed to pay employees a portion of wages they lose due to illness or injury.

Workers compensation insurance provides a wealth of essential benefits to both employees and their employers. Employees gain the assurance that they will not be totally without income in the event that they are injured on the job or suffer from some illness related to their job. For employers, they too are protected in this same way. Employers who pay into the state workers compensation insurance fund get legal protection that they wouldn’t otherwise have. That means they don’t ever have to worry about whether or not a lawsuit could eat up all of the company’s profits and wipe it out entirely.

Proof of Insurance and Financial Responsibility

Proof of Insurance & FinancialProof of your insurance will be available in the Motor Vehicle Division Database (MVD), but if there is no electronic record at all then you should be ready to show some other proof for your insurance

  • Insurance Card :
    Those cards which are under the International Registration Plan (IRP) or self insured are considered as valid proofs for the car insurance. But just the car insurance cards are not considered to be the proof of your car insurance, state requires the carriers to give them and the car owners should always carry with them while driving.
  • Self-Insured Information :
    As a proof of financial responsibility you can use the certificate of self-insurance and self insured information card from safety Fire Commissioner or Office of Insurance when you insure your car yourself.
  • Insurance Binder :
    Your District Of Columbia car insurance will be issued a binder if at all you are buying the car insurance for the first time. The binder will be valid only for 30 days and this is one of the way to show the proof of your insurance.
  • Bill of Sale/Declaration Page :
    If you have purchased a new car, copy of the bill along with insurance declaration page can be provided as proof of insurance just for 30 days.
  • Shop for Car Insurance :
    1. Do not take hasty decisions by just seeing one car insurance company. Keep shopping regularly and take your time to check all the car insurance companies.
    2. To get the best combination of price and quality, contact as many car insurance companies you can and also the insurance agents.
    3. Plan yourself what you want before buying because later you should not end up buying something you do not require.
    4. Take a look at each company’s financial stability, underwriting practices, claim handling practices and policyholder services.
    5. Check about the discounts.