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Workers Compensation Insurance

Workers Compensation Insurance

What is workers compensation insurance?

Workers compensation insurance is a product employers purchase to provide coverage for employees in the event that they suffer a work related injury during the course of employment. Benefits afforded to employees injured during the course of employment include medical benefits, wage loss benefits, and if required, vocational rehabilitation benefits.

What does workers compensation insurance cover?

Workers comp insurance covers your employees for any injuries incurred during the course of their employment. In the event of a job related injury, your employee is provided with the following benefits.

Medical Benefits

This section provides coverage for all reasonable and necessary medical care. This will include medical, surgical, hospital, dental, nursing, chiropractic, hearing apparatus and crutches. This benefit continues indefinitely long as the worker needs the care for that injury he or she incurred.

During the first 10 days of an employee’s injury, the employer has the right to choose the doctor. After the 10 days are up the employee is free to go to whatever doctor he or she chooses but must advise the employer of this change.

 

Wage Loss Benefits

In the event that an employee is unable to return to work within 29 days of the injury, they will be eligible to claim wage loss benefits under your workers compensation.

How does the value of wage loss benefit get calculated? It’s calculated at 80% of the after-tax value of his or her wage loss and will be calculated at the highest 39 of the last 52 weeks – however, this is subject to the state average weekly wage for the year prior to the injury, and the rate is established based on the date of injury. These benefits are paid as long as the worker is disabled and could last for the rest of their life. NOTE: Benefits reduce 5% each year beginning at the persons 65th birthday and once reduced the 50% at age 75 the benefits continue at that level until death.

 

Vocational Rehabilitation Benefits

The primary focus is to get an injured employee back to work as quickly as practical even if the employee still has some continuing problems. Vocational Rehabilitation Benefits does just that. It might mean the insurance company will hire an outside rehabilitation counselor to assist the employee and employer to make a new job assignment or make alterations to a job description to fit the needs of the worker. The carrier may even need to hire a rehabilitation agency to assist in finding the worker and new employer with the same pay.

One very important item to remember is disability management is the key to reducing the cost of your future workers compensation premium when you have an injured employee as well as having your employee more willing to do what they can to get make to work with the feeling of being functional once again.

Death Benefits

If a worker is killed and the death arises out of and in the course of employment, death benefits are paid. these come in the form of a burial allowance and a weekly income that is provided with state minimums and maximums. This is primarily for the benefit of children and benefits stop at the age of 18 or a spouse until a remarriage takes place

Why you need workers compensation insurance

Besides the fact that workers compensation is a state-mandated coverage in Michigan, your employees are the life blood of your business. Workers compensation mandates were put into place so that employees injured on the job can seek proper medical care for as long as necessary to recover from their injury and get back to working condition.

What is workers compensation insurance?

Workers compensation insurance is a product employers purchase to provide coverage for employees in the event that they suffer a work related injury during the course of employment. Benefits afforded to employees injured during the course of employment include medical benefits, wage loss benefits, and if required, vocational rehabilitation benefits.

What does workers compensation insurance cover?

Workers comp insurance covers your employees for any injuries incurred during the course of their employment. In the event of a job related injury, your employee is provided with the following benefits.

Medical Benefits

This section provides coverage for all reasonable and necessary medical care. This will include medical, surgical, hospital, dental, nursing, chiropractic, hearing apparatus and crutches. This benefit continues indefinitely long as the worker needs the care for that injury he or she incurred.

During the first 10 days of an employee’s injury, the employer has the right to choose the doctor. After the 10 days are up the employee is free to go to whatever doctor he or she chooses but must advise the employer of this change.

 

Wage Loss Benefits

In the event that an employee is unable to return to work within 29 days of the injury, they will be eligible to claim wage loss benefits under your workers compensation.

How does the value of wage loss benefit get calculated? It’s calculated at 80% of the after-tax value of his or her wage loss and will be calculated at the highest 39 of the last 52 weeks – however, this is subject to the state average weekly wage for the year prior to the injury, and the rate is established based on the date of injury. These benefits are paid as long as the worker is disabled and could last for the rest of their life. NOTE: Benefits reduce 5% each year beginning at the persons 65th birthday and once reduced the 50% at age 75 the benefits continue at that level until death.

 

Vocational Rehabilitation Benefits

The primary focus is to get an injured employee back to work as quickly as practical even if the employee still has some continuing problems. Vocational Rehabilitation Benefits does just that. It might mean the insurance company will hire an outside rehabilitation counselor to assist the employee and employer to make a new job assignment or make alterations to a job description to fit the needs of the worker. The carrier may even need to hire a rehabilitation agency to assist in finding the worker and new employer with the same pay.

One very important item to remember is disability management is the key to reducing the cost of your future workers compensation premium when you have an injured employee as well as having your employee more willing to do what they can to get make to work with the feeling of being functional once again.

Death Benefits

If a worker is killed and the death arises out of and in the course of employment, death benefits are paid. these come in the form of a burial allowance and a weekly income that is provided with state minimums and maximums. This is primarily for the benefit of children and benefits stop at the age of 18 or a spouse until a remarriage takes place

Why you need workers compensation insurance

Besides the fact that workers compensation is a state-mandated coverage in Michigan, your employees are the life blood of your business. Workers compensation mandates were put into place so that employees injured on the job can seek proper medical care for as long as necessary to recover from their injury and get back to working condition.

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