The workers’ compensation system can be confusing if you are not clear on how it works. Each state runs its own system, but the state does not pay for the coverage or offer it. The financial responsibility for workers’ compensation is on the employer, according to News Channel Nebraska.
An employer must purchase workers’ compensation insurance through an insurance company. It works like any other type of insurance.
Premiums
Your employer’s workers’ compensation insurance has a premium to keep the policy active. Your employer must pay this premium completely out of pocket. It cannot pass the cost onto its workers. It is illegal for employers to make employees pay for this insurance.
Legal requirement
Most employers must carry workers’ compensation insurance. The law mandates it to protect not only employees but also the business. A single lawsuit over an on-the-job accident could completely wipe out the finances of a company, but by having this insurance, the employer protects itself from legal claims.
Protection
When employees receive workers’ compensation benefits, it automatically bars them from making a claim in court against the employer except in limited circumstances. Furthermore, having this insurance provides immediate and stable benefits.
This is where the state comes in. The state sets the requirements and obligations of the program. It says how much you can receive for injuries, including benefits for medical expenses and for lost wages. It also oversees the system to ensure fairness.
You make a claim and the system goes to work. You can seek medical care and have those expenses paid for under the program. If you miss work, you may also receive payments for a portion of your lost wages. Instead of waiting for a court case to move through the system, you get these benefits swiftly and without having to prove your case beyond submitting your medical bills and reports from your doctor.