Workers compensation insurance was developed as an efficient and socially responsible solution to an ever increasing number of work related injuries and deaths resulting from our economy’s evolving from an agrarian to an industrial work force. Before workers compensation insurance came into the marketplace, injured employees or their survivors had to prove their work-related injuries resulted from the employer’s negligence in order to receive compensation for their injuries. Common law courts at the time favored employers making negligence difficult to establish. Without workers compensation insurance the burden of caring for and supporting these injured workers fell on society at large.

Work comp insurance became the method of shifting this social burden away from taxpayers and back into the workplace. In addition, workmans compensation insurance provided the free-market incentive for employers to improve safety conditions and reduce work related injuries.

Workers compensation insurance laws are now in effect throughout the United States. Most states have compulsory work comp insurance laws meaning the employer must provide workmans compensation insurance. Those states with elective workers compensation insurance laws are Texas, New Jersey, and South Carolina. Elective work comp laws allow the employers or employees to elect to remain outside of the provisions of the workers compensation insurance laws.

Workers Compensation Insurance – Why You Need It

Most states have provisions within their work comp laws that exempt certain smaller employers from complying with workers compensation regulations. While these employers may be exempt from providing work comp insurance, they are not exempt from providing compensation benefits to injured employees.

Workers compensation legislation typically takes away the injured employee’s right to file suit against the employer. In exchange, the employee is assured reasonable compensation for injuries without the need to prove negligence. While the employer is assuming absolute liability for the injury, workers compensation legislation protects the employer from expensive lawsuits and financially ruinous settlements.

Employers that choose to be exempt from work comp legislation also give up the protections afforded by it. Their injured employees would retain the right to bring suit against the employer, and any settlements that are won are only limited by the discretion of judges and juries.

Today employers who fail to provide workmans compensation insurance when mandated also expose themselves to severe civil penalties and fines.

Workers Compensation Insurance – What Does It Provide

Workers compensation Insurance provides benefits to injured employees for work related accidents and diseases. Workmans compensation insurance benefits are provided through private insurance carriers licensed by each state’s Division of Workers Compensation. The five types of work comp benefits provided include:

	Workers Compensation Medical Benefits
	Workers Compensation Income Benefits
	Workers Compensation Death Benefits
	Workers Compensation Rehabilitation Benefits
	Workers Compensation Loss of Use Benefits

Work Comp Medical Benefits: Every state requires that Workmans compensation medical benefits be provided. Injured employees are to be afforded all medical services necessary to heal their condition. Unless the employer chooses a deductible these services are to be paid for by the workers compensation insurance policy. There may be limits on a particular type of treatment. However, work comp medical benefits are generally unlimited.

Work Comp Income Benefits: Income benefits are paid to workers who suffer work comp related disabilities. Typically there is a three to seven day waiting period that applies before work comp income benefits are paid. Retroactive work comp income benefits are available for the waiting period if the work comp disability continues longer than two weeks. If a work comp related injury or disease proves to be permanent then work comp income benefits may continue for life. Work comp related injuries can result in a reduced ability to work. Employees with People with partial disabilities are able to perform some work, State workmans compensation laws typically provide a work comp income benefit equal to the difference between income before and after the injury.

Work Comp Death Benefits: There are two types of workers compensation death benefits provided by work comp laws: burial expenses and survivors payments. Woirk comp burial expenses typically only provide for the cost of basic internment services. Workers compensation survivor payments can include lifetime income benefits for a surviving spouse and children. Children’s benefits typically end at age 18, but can continue until age 21 if the child remains in school

Work Comp Rehabilitation Benefits: Often injured workers will require therapy and rehabilitation to resume a more normal life or return to the workplace. Workmans compensation rehabilitation benefits provide payments for therapy to assist with activities of daily living, occupational therapy, and medical devices like wheelchairs,

Work Comp Loss Of Use Benefits: State workers compensation insurance laws provide specific payment schedules to workers for the loss of use of body appendages including arms, legs, ears and eyes.

Workers Compensation Insurance – Occupations Covered

Workmans compensation laws originally only protected the most hazardous job assignments. Work comp laws have been broadened to include most every worker category. In most states the following categories are exempt from workers compensation laws:

	Farming and Agricultural Work Comp
	Charitable Organization Work Comp
	Casual Labor Work Comp
	Newspaper Vendor Work Comp
	Self-Employed With No Employees Work Comp
	Volunteers Work Comp

Each state will have specific workers comp rules detailing the various classes of workers exempt from workers compensation insurance. As an example, in Kansas employees that own 10% or more of their company’s stock can exempt themselves from workmans compensation. However, in Missouri they cannot exempt themselves from You’ll want to check with your state’s Division of Workers Compensation for accurate information. Search: (Your State) Division of Workers Compensation Insurance

Workers Compensation Insurance – How To Buy It Cheap

Workers compensation insurance is bought as a separate policy. Businessowners policies, general liability, and property insurance policies do not include coverage for workers' injuries. It is the responsibility of the business owner to know if they are required to have workmans compensation insurance. It is also the responsibility of the business owner to understand how their work comp policy operates.

Five states require that employers purchase workers compensation insurance directly from their state sponsored workers compensation fund. These states are referred to a monopolistic. The following links will take you directly to authorized web site for those state work comp funds:

In the remaining 45 states employers can purchase workers compensation insurance either from work comp insurance companies or a competitive work comp state fund. Employers can also form their own self-insurance work comp fund, but most will find this to be an expensive task and difficult to administer.

CHEAPWORKCOMP.COM was created as a tool to help employers find the cheapest workers compensation insurance rates in their state. CHEAPWORKCOMP.COM is not an insurance company. CHEAPWORKCOMP.COM is a network of insurance agents that specialize in workmans compensation insurance. We share resources, strategies and new ideas all to help you quickly find the cheapest work comp insurance for your business. Click on your state link above to be directed to a CHEAPWORKCOMP.COM affiliated insurance agent in your area.