Workers Compensation Insurance
What is Workers Compensation Insurance?
Required in every state, workers compensation covers lost wages, benefits, and medical expenses for employees who suffer injury on the job. Nearly all businesses are required to offer worker’s compensation to their employees, with the exception of the self-employed, independent contractors, and companies who employ fewer than three people. Several state and federal agencies oversee and administer workers compensation, including OSHA, the N.C. Department of Labor, and the N.C. Industrial Commission.1
All About Insurance knows small businesses in North Carolina drive state industry and the economy. Without excellent employees who are covered by robust insurance programs, small businesses will struggle to succeed. At All About Insurance, we’ll provide you with dependable workers compensation insurance to ensure your business complies with state and federal law. That way, if an injury occurs to one of your employees, that employee will continue to receive a livelihood and coverage for medical expenses while he recovers.
Why workers compensation?
Workers compensation exists to protect employees from losing their income and incurring exorbitant medical expenses as a result of on-the-job injury. This compensation became prevalent in the United States during the early 1900s when on-the-job injuries in the industrial field were common. In addition to employees, workers compensation insurance protects employers and businesses from most lawsuits involving injuries requiring workers compensation. In fact, offering workers compensation for injured employees is typically less expensive for an employer than weathering a costly lawsuit should an employer be found negligent in offering compensation.2
The penalties for not offering complete compensation claims or avoiding workers compensation can be severe. Disputed claims often require mediation, with the cost of mediation being shared between plaintiff, employer, and an insurance company.3
Generally speaking, in practice workers compensation costs are passed from the employer to their consumer, with employers adjusting their production or service cost to reflect the need to have workers compensation insurance.4
Key facts about Workmans Comp
- Practically all American employers are required to offer workers compensation.
- Injured employees should report on-the-job injuries as soon as possible. For hospitalizations, amputations, and eye losses, OSHA mandates those injuries be reported within twenty-four hours.5
- Compensated ailments are not just limited to physical injury; they also include cumulative injury trauma, like inhaling coal dust over several years, and occupational illnesses and mental disorders developed from job-related stress.6
- In North Carolina, injured employees are eligible to receive compensation after the first seven days of lost work time. This compensation constitutes weekly payments at 66.6% of an average weekly wage and should not exceed $884.00 per week as of 2013.7
- North Carolina Employers' Information
- Workplace, Worker, and Employer Information
- North Carolina Labor and Information
1"Workers' Compensation." Gale Encyclopedia of Everyday Law. Ed. Donna Batten. 3rd ed. Vol. 2: Health Care to Travel. Detroit: Gale, 2013. 1137-1141. Gale Virtual Reference Library. Web. 2 Nov. 2015.
2Goldberg, Stephanie, "Losing track of comp injuries hurts employers." Business Insurance 49, no. 17 (August 17, 2015): 0001. Business Source Complete, EBSCOhost (accessed November 2, 2015).
4"Workers' Compensation." Gale Encyclopedia of Everyday Law
5Goldberg, Stephanie, "Losing track of comp injuries hurts employers."
6"Workers' Compensation." Gale Encyclopedia of Everyday Law