Workers Compensation Overview

Workers compensation by definition is a state directive insurance program that gives compensation to employees who suffer job related injuries. An employee who is injured gets the benefits despite of who was at fault - the employee, the employer, a co-worker, a customer or some other third party. In exchange for these guaranteed benefits, the employees usually do not have the right to sue the employer in court for damages for the injuries. In addition, Workers Compensation is a program that requires your employer to pay medical costs and part of your lost wages if you are injured, or become ill, because of work conditions. In case of death, dependents get benefits.

In most states, employers are obligatory to acquire insurance for their employees from a workers compensation insurance company also called an insurance carrier. Nevertheless, in some states, smaller companies are not required to carry workers compensation insurance. In other states, larger employers who are clearly solvent are allowed to self-insure, or act as their own insurance companies. When a worker is injured, his or her claim is filed with the insurance company or self-insuring employer who pays medical and disability benefits according to a state-approved formula.

Most on the job injuries are covered by workers compensation. The workers compensation system is intended to give benefits to injured workers, even if an injury is caused by the employers or employee carelessness. But there are some exemptions. Generally, injuries that happen because an employee is intoxicated or using illegal drugs are not covered by workers compensation. Coverage may also be denied in situations involving:

• self-inflicted injuries (including those caused by a person who starts a fight)
• injuries suffered while a worker was committing a serious crime
• injuries suffered while an employee was not on the job, and
• injuries suffered when an employees conduct violated company policy.

Your injury need not be caused by an accident such as a fall from a ladder to be covered by worker's compensation. Many workers, for example, receive compensation for repetitive stress injuries, including carpal tunnel syndrome and back problems, which are caused by overuse or misuse over a long period of time. You may also be compensated for some illnesses and diseases that are the gradual result of work conditions for example, heart conditions, lung disease and stress-related digestive problems.