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What is Worker’s Compensation Insurance?

Workers’ compensation is a state mandated requirement. The regulation requires almost all employers to provide coverage to employees for any injury that takes place in the workplace. The coverage is designed to provide workers with lost wages and medical bills when an injury takes place as they perform their regular job duties. However, many employees throughout the country don’t understand how worker’s compensation actually works.

Workers’ Compensation Insurance

In most cases, a company arranges for workers’ comp through an insurance company. However, larger companies with significant assets are permitted to provide insurance themselves as a “self-insured” entity. If your company is self-insured for workers’ comp, all decisions to deny or approve claims are determined by someone in the company, while insurance officials make the determination if your company uses a workers’ compensation insurance company to provide coverage.

Who Establishes and Monitors Workers’ Comp Laws?

Each state establishes and monitors the workers’ compensation regulations in their state. This means that laws differ between each state. The state determines how claims are to be handled, what dispute mechanisms are available and what workplace injuries are covered. Because each state has different laws related to workplace injury, it is important to discuss any injury you sustain while performing your job duty with an attorney, especially if your company is headquartered in one state but you are injured in another.

Does Every Business Have to Have Worker’s Compensation?

In most states, the majority of businesses must carry workers’ compensation. However, states vary in what size and type of business falls under the requirement. In some states, sole proprietors or partnerships are exempt from carrying workers’ comp while in other states the business must have a certain number of employees.

For example, in Pennsylvania, Maryland and Delaware, an employer with one employee must carry workers’ compensation, but in Arkansas, the employer must have three or more employees before they are required to carry the coverage. In addition, certain industries may be exempt from carrying workers’ comp. In Pennsylvania, there are exemptions available for agriculture workers, for example.

Am I an Employee?

In order to determine if you are eligible for workers’ comp, you must first determine if you are an actual employee of the company. In some states, independent contractors are not required to be covered under a company’s workers’ comp insurance. In other states, family members employed in the business can be excluded when determining if a business must carry workers’ comp, but they are eligible for the benefit if the company is required to carry it.

If you or a loved one has been injured while performing your job duties, contact Lundy Law today to learn what rights you may have. Hiring an attorney does not mean you plan to sue your employer. In fact, the law does not allow you to do so in most cases. Instead, an attorney will advise you of the laws that pertain to your case and help you get the compensation you deserve. You can arrange for an initial consultation by calling 1-800-Lundy Law or by completing the simple form on our website.

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