Workers Compensation Checklist

WHAT IS WORKERS COMPENSATION?

Workers’ compensation (also known as workers’ comp) provides insurance to cover medical care and compensation for employees who sustain injuries or illnesses within the course of employment, in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for negligence or damages.

While plans differ between states, provisions normally can be made for weekly payments in place of wages (like disability insurance), compensation for lost wages (past and future), reimbursement or payment of medical expenses (functioning in this case as a form of health insurance), and benefits payable to the dependents of workers killed during employment (functioning in this case as a form of life insurance). 

DO I NEED WORKERS COMPENSATION INSURANCE?

Most employers are required to subscribe to insurance for workers’ compensation, and an employer who does not may have financial penalties imposed. Insurance policies are available to employers through commercial insurance companies: if the employer is deemed an excessive risk to insure at market rates, it can obtain coverage through an assigned-risk program.

WHAT STEPS SHOULD I TAKE?

• As an employer you need a policy in place to ensure you capture all the necessary information required by your state to report all injuries and illnesses related to the work environment. 
• Your policy should state which form is to be used to report injuries or illnesses and who to report it to. (HR, Manager etc).

CHECKLIST:

• Verify you have workers compensation insurance coverage. Keep a record of the policy number, name of carrier and contact information.
• Train managers and supervisors on your policy.
• Report all injuries and illnesses to the appropriate state agency. (Some states have specific forms that are required)
• Make Safety a priority in your organization to reduce workers compensation claims and reduce your premium costs.