what is workers compensation insurance 

The Ins and Outs of Workmans Comp

What is workers compensation insurance? In most states, under this system, employers are required to purchase insurance that provides benefits to employees injured on the job. Because it is governed by state law, each state’s system may differ slightly from others. Federal employees are covered under a separate federal workers compensation system. Nevertheless, the overall operation and structure are similar from one state to another.

What is Workers Compensation Insurance Coverage?

The system only covers work-related injuries or illness. That doesn’t mean it necessarily has to occur at the workplace to fall under the scrutiny of the law. It simply has to be job-related. This means injuries that occur during business travel, business errands or business-related social functions are usually covered.

The injuries covered range from sudden accidents to injuries that happen over time. Sudden accidents might include something like a slip and fall where an accident that result overtime might include repetitive stress injuries or illness due to exposure to chemicals.

What Does Workers Compensation Not Cover?

Although workman’s comp covers a lot of work-related injuries and illness, it doesn’t cover everything. Employees might be denied coverage in the following situations:

  • Felony-related injuries
  • Self-inflicted injuries
  • Injuries due to alcohol or drugs
  • Injuries due to a fight started by the employee
  • Injuries suffered on the job
  • Injuries suffered by an independent contractor
  • Injuries that occur after termination or being laid off