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What is workman's comp?

There are many workers’ comp benefits for both employees and companies.

Workers’ comp insurance can include compensation for:

  • Medical expenses
  • Partial reimbursement of missed wages
  • Rehabilitation or ongoing prescription drug expenses
  • Death benefits in the event of an occupational fatality

This type of insurance is usually mandatory for most businesses with employees. There are some exceptions, which do vary state by state. Some of these types of exceptions may include:

  • Family-run businesses (with only family members as employees)
  • Small agricultural businesses
  • Companies with seasonal workers

However, business owners should contact their state’s appropriate governing agency to navigate exemptions. Workman’s comp insurance is vital because it provides a way for employees to get the help they need to be healthy and ready to return to work in the event of an on the job injury. If the employee cannot come back to work – for example, if their injury means that they are permanently disabled and can’t do the job that they once did – workers’ comp disability insurance can help make longer-term payments too. This helps show employees the support and investment you’ve made in them.

Why workers’ comp benefits employees

Workers’ compensation benefits can vary depending on the type of injury, where the injury occurs on the body, and how long it takes to recover. Many workers’ compensation insurance companies have detailed charts for different types of injuries and how they factor into workers’ comp payments to employees. Some injuries may result in larger payouts than others, depending on the severity and the implications for the injured employee.

Having partial financial support through workers’ compensation coverage can make a difference in getting proper medical treatment. Workers’ comp monetary assistance can offset healthcare costs and encourage employees to seek out necessary medical treatments regardless of potential costs.

However, to receive reimbursement, injuries must be considered “covered.” This means that the injury must have occurred while completing work-related duties (such as using a power tool while installing something on the job) or because of work-related duties (like developing a respiratory illness due to exposure to mold at a job site). There are some exceptions to these rules, such as if the employee was intoxicated or under the influence of drugs while the accident occurred. In such a situation, workers’ compensation coverage may not apply.

Workers’ comp benefits usually also include the partial replacement of lost wages. This aspect of workers’ comp can be immensely useful to an employee who might need days or weeks off of work to recover. Replacement wages are not usually paid out at the full amount of what the employee would have made if they had been at work. Reimbursement rates are unique to each state and insurance company. This means that the employee can continue to pay their bills while receiving medical treatment or recovering.

Lastly, workers’ comp benefits also typically include death benefits. This means that expenses such as funeral and burial costs may be covered for the employee’s family. These benefits can aid families who are grieving the loss of a loved one.

What is Workers' Comp

Discover why it’s important for businesses to obtain workers’ comp to protect workers in the case of a work-related injury or illness.

Why workers’ comp benefits companies

There are also benefits for companies, too. For instance, workers’ comp for employers may include liability insurance for the company. This may include coverage for:

  • Attorney’s fees
  • Settlements
  • Court fees

This coverage can be utilized if an employee sues the company for damages arising from a workers’ compensation dispute.

Workers’ comp is also an important tool for maintaining employee morale and retaining employees. Companies benefit from healthy workforces; having sick or injured workers on warehouse floors can increase liability and harm profitability. In addition, by providing support to employees when they need it most, employers can cultivate a loyal workforce that feels empowered to seek medical help when necessary.

Workers’ comp resources can help to establish a workplace safety mindset and reverence for safety protocols. Although workers may be compensated for work-related injuries, preventing accidents in the first place should always be a company priority. Due to the way workers’ insurance is calculated, companies receive incentives for having fewer and less severe injury compensation claims. Consequently, a company may save money by having a safer workplace. This benefits employers and employees.

Why CompSource Mutual

CompSource Mutual has provided Oklahoma businesses with workers’ compensation for more than 85 years. Our team offers top-notch expertise to the businesses that support the Sooner State’s economy. Get the coverage and insight that you need from our experienced team. Get a quote.

Meet the Safety Team

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There are many workers’ comp benefits for both employees and employers. Some benefits for employers include: a healthier workforce, boosted morale, and a lower employee turnover rate. Some benefits for employees are paid medical expenses, partially reimbursed wages, and disability payments for longer-term injuries.

The five basic types of workers’ compensation benefits are: medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits, and death benefits. In addition, injured workers may be entitled to one or more of these benefits.

There is typically a work compensation law in every state that requires most businesses to obtain workers’ compensation coverage. In Oklahoma, there are a few exceptions to this law, such as for agricultural companies with payrolls less than $100,000, but by and large, companies with employees need to carry workers’ compensation insurance. However, potentially exempt businesses frequently carry workers’ comp coverage anyway, as the benefits can greatly outweigh the costs. To learn more about requirements and exemptions, business owners should contact their state’s appropriate governing agency.

The rate varies widely depending on many variables. These variables may include: the state the company operates in, the type of business the company does, the employees on the payroll, and the experience modification rate.

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