As a business owner, you’re required to purchase Workers’ Comp insurance for your employees in case they get injured on the job. When you meet with new hires, though, they have many questions about how this insurance coverage works. Use this crash course in understanding the Workers’ Comp process to address all their concerns regarding disbursement of benefits.
Filing Injury Reports Is Key
Your insurance company can’t start making payments until your employees file reports about their injuries. Also, most insurance companies or states set deadlines on when injured employees can apply for benefits. For example, in California, employees have 30 days to let their employers know that they have been injured at work and one year to file a formal Workers’ Comp claim. As a result, if your employees want to receive Workers’ Comp benefits, they need to fill out their paperwork promptly.
Three Kinds of Benefits Are Available
Once your employees have submitted their reports properly, there are three kinds of benefits they could receive. If they are unable to work because of the injury, they receive tax-free disability payments that cover part of their lost wages. These payments generally start less than a month after your insurance company approves your employees’ applications.
Not every person who gets injured on the job qualifies for disability benefits, but most of them are eligible for medical compensation. As long as employees visit a doctor on your insurance-approved list, Workers’ Comp benefits help them pay for their medical care. Even if your employees have sustained minor injuries such as sprained limbs, your insurance should cover their bills.
When workplace injuries turn into long-term conditions requiring rehabilitation, your employees can apply for Workers’ Comp funding to cover physical therapy. They should submit their applications as soon as they know that they’ll need rehabilitation, but insurance companies do not begin payments until the program actually starts.
Choosing the Right Doctor Affects Benefits
When your employees receive care right after their injuries and throughout the rehabilitation process, they must choose an insurance carrier-approved physician. Otherwise, they risk forfeiting their rights to Workers’ Comp payments. Most insurance companies waive this requirement if your employees’ lives are in danger, and they must get medical attention immediately. Still, to help your employees navigate the Workers’ Comp disbursement process, make a list of all your approved doctors and include it in your orientation or worker’s handbook.
Open Communication Is Crucial
Your employees need the benefits from Workers’ Comp insurance as soon as possible, so they must maintain open communication with your insurance company and legal team. Encourage your employees to reach out to your insurance agent if there are delays, and offer them legal assistance so they know about your state’s laws.
InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs. Unlike other online platforms, we will help you to work with an agent who can provide you the right solution for your risk profile. Our staff has over 50 years of workers’ compensation underwriting and sales experience, and we are confident that we will provide you the support that you need. For more information or to get a quote, contact us today at (855) 340-9138.