Workers’ Compensation: Where the Benefits Come From

Workers’ Compensation

After sustaining an injury at work, you should visit your doctor as soon as possible. Most often, your employer should allow you to leave work to receive medical attention as quickly as you can. Even if you aren’t sure that the injury is going to be a serious one, it’s crucial that you have a doctor look at it. When you’re injured due to a work-related accident or performing your work duties, then you are entitled to workers’ compensation. The question is who is responsible for providing the benefits? Here is what you need to know.

State Programs

In most states, there are two options. An employer can choose a state-run program or a private insurance option. The administrator of these programs is usually the department of labor or industrial relations. The employers that are more likely to choose these options are small employers or those who are in industries with fewer injuries.

When your company uses state programs, then it is going to be the state department that is responsible for handing out benefits. Employers may pay premiums, but the insurance company has to look into what type of compensation that the employee deserves.

Self-Insurance

Self-insurance is something that generally only large companies have. These companies have to be large enough and have the assets to cover workers’ compensation liability. Most stated require these companies to adhere to oversight by the state. This ensures that the company follows the proper procedures regarding workers’ compensation. It is important that a company still follows the same workers’ compensation regulations and provides the workers with the proper amount of compensation. Often, there will be a third-party administrator that administers the workers’ compensation to the workers.

Insurance Companies

Employers in most states will purchase workers’ compensation insurance from a private company. This, of course, is only in states that allow for the purchase of private workers’ compensation insurance from companies. In some states, however, private workers’ compensation insurance is not allowed. When an employer uses a private insurance company, then that is the company responsible for paying out the benefits.

When it comes to workers’ compensation, the person or company responsible for covering medical bills and lost wages due to injury depends on the state’s laws and the employer’s decision. If an employer chooses to insure through a company, then the insurance company is responsible. If you are in the middle of a workers’ compensation case, contact a workers’ compensation lawyer, like a work injury compensation lawyer in Boca Raton, FL, to have an advocate on your side.

Thank you to the experts at the Law Offices of Franks, Koenig & Neuwelt for their insight into worker’s compensation laws.