I am asked time and time again about workers’ compensation and how it works. The workers’ compensation system varies from state to state. Employers must purchase workers compensation insurance to comply with state law. More importantly, the policy provides benefits to their employees who have suffered a work-related injury or illness.
Here are some state requirements for the Mid-Atlantic area:
- MARYLAND – Any employer with 1 or more employees (part time or full time) must provide workers compensation insurance, with a few exceptions
- VIRGINIA – Employers who have 2 or more employees (part time, seasonal, temporary workers) are required to carry worker compensation insurance
- DISTRICT OF COLUMBIA – Any employer with 1 or more employees
Employees receive benefits regardless of who is at fault and in return the employer is protected from lawsuits. Without workers’ compensation, lawsuits seeking money damages for pain and suffering along with mental anguish are possible.
This insurance only covers work-related injury or illness. The injury or illness does not always have to occur in the workplace but it must be job-related. If you file a successful workers’ compensation claim, you will usually receive compensation for out-of-pocket medical expenses as a result of your injury at work. You can also recover a portion of your lost wages if you missed work due to your injury.
In some states, if the employee suffers an injury due to the employers intentional or reckless actions, the employee can seek to bypass the workers’ compensation system and sue the employer in court. This is also true if an employer fails to secure the required workers compensation insurance.
Insurance coverage can be very confusing. If you have questions about providing workers compensation insurance for your business, please contact one of our agents. We are here to answer your questions and provide the financial protection you need for your business and your employees! https://www.insurance-financial.net/workers-compensation-insurance/
by Connie Phillips