What is workers compensation?

Workers' compensation is a form of business insurance. It provides benefits to employees who get injured or ill while on the job. Workers' compensation helps pay for the following:

• medical care
• Loss of pay due to absence from work when injured or ill
• Vocational rehabilitation, if necessary
• Death benefits, if the work-related accident proves fatal

Workers' compensation is designed to protect the interests of both the employer and the employee. Generally, employees who receive these benefits give up their right to sue the employer, although there are exceptions.

Who administers the workers compensation program?

Each state operates its own workers compensation program. The state determines the following:

• Premium Rates
• Benefit amount
• Whether coverage is sold by state agencies or private insurers

State workers' compensation programs cover most employees who work for a privately owned company or for a state or local government. Laws vary by state, so it's important to check the rules and requirements in each state where your employees work. You can find links to each state's workers' compensation office   here .

Federal employees and certain other employees  are covered by workers' compensation programs administered by  the U.S. Department of Labor .

Who is required to have workers compensation insurance?

Most states require all employers to provide workers compensation coverage to their employees. But each state has exceptions for certain types of businesses and certain workers, so, again, it's important to check local laws.

How much does workers compensation insurance cost?

Employers must pay a premium for workers' compensation coverage. There is no standard cost; premium rates depend on several factors, including:

• State Law
• How much risk do your employees take in their work?
• Size of your business
• the amount of your salary
• The number of previous claims you have filed

In states where private insurance companies provide workers' compensation coverage, it is often beneficial to look for the best rates.

How do you file a workers compensation claim?

If an employee is injured on the job or becomes ill as a direct result of work, he or she must notify his or her employer immediately. The employer must first ensure that the employee receives any immediate medical care he or she needs. In most states, the employee is required to visit a healthcare provider chosen by the employer.

The employee must fill out a workers compensation claim form with details of the incident. The employer submits the claim to its insurance company. If approved, the employee will be awarded benefits. Employees have the right to appeal a denied workers compensation claim or dispute the amount of their benefits.

Claims should be filed as soon as possible. Deadlines vary by state law. For example, employers in New York only have 10 days to file a claim after an accident.