Workers’ compensation is a type of insurance meant to help employers absorb costs associated with claims filed by employees who are injured while on the job. As is the case with other types of business insurance, there are different options available with workers’ comp coverage. Take a moment to learn more about the three types of workers’ compensation to consider for your business.
1. Medical-Only Coverage
Medical costs related to an on-the-job injury can be difficult for many businesses to absorb. For this reason, medical-only coverage is one of the most preferred types of workers’ compensation insurance. This type of policy primarily pays health-related costs associated with a qualifying incident. It’s also common for policies of this nature to include the ability to cover time lost from not being able to return to the job. Some medical-only policies also have waiting periods or brief delays before benefits are paid out.
2. Temporary Disability
With this type of workers’ compensation, benefits are paid if an injured worker needs time to recover before being given the medical okay to return to work. It only applies to injuries that specifically occurred while on the job, although there may be some exceptions. For example, if an existing back issue was worsened as a result of a work-related injury, temporary disability benefits may be approved. However, this benefit ends once the employee is able to return to work.
Partial temporary disability is a variation of this type of coverage that may apply when an employee returns to work before he or she has fully recovered. This is more likely to be requested or granted if the affected employee needs to work fewer hours until fully recovered. In this instance, the benefits would make up for the loss of income from working fewer hours. These benefits also typically end when the employee is able to resume his or her normal work schedule.
3. Permanent Disability
If an employee’s injuries are severe or debilitating, he or she may not be able to safely return to work at all. Should this be the case, you may benefit from the third type of workers’ compensation, permanent disability coverage. The caveat here is that the injuries resulting in permanent disability must be ones that affect the ability to carry out work-related duties. Recipients of this coverage typically need to have some type of impairment that’s not likely to improve.
It’s also possible for partial permanent disability benefits to be an additional option with this type of coverage. This may happen if an employee is still able to work in some capacity even if he or she can no longer carry out his or her previous work-related duties.
Determining What’s Right for Your Business
At the very least, many businesses benefit most from medical-only workers’ compensation. Because of the many variables involved with insurance-related decisions, it can be helpful to meet with an insurance professional before making any decisions. Doing so gives you an opportunity to discuss your options and get personalized advice.
Business owners need workers’ comp because operating a business means assuming certain kinds of risk, including the possibility of employee injuries. For affordable, reliable commercial insurance as well as homeowners, renters, motorcycle, and car insurance, call on the trustworthy professionals at Altra Insurance Services. Reach out to us today at (800) 719-9972 to learn how we can satisfy all your insurance needs.