According to the United States Bureau of Labor Statistics, there were over 800,000 workplace injuries and illnesses that caused employees to miss one or more days of work in 2019. When an employee becomes injured on the job, and they are not at fault for the injury, they are entitled to workers’ compensation. This means they may be able to receive financial compensation to cover costs like medical expenses, lost wages, ongoing treatment or funeral expenses if the person passes away from their injuries.
Who is Entitled to a Payout From Workers’ Compensation?
An employee (or their dependents) are entitled to receive workers’ compensation if:
- They are actively employed
- The company they are employed by has workers’ compensation insurance
- They endured a work-related injury or illness through no fault of their own
- They meet the state deadlines for reporting the injury or illness and filing a claim
Sometimes workers’ compensation claims are denied due to lack of information, liability falling on the worker or a missed deadline.
Why Do You Need Workers’ Compensation?
Workers’ compensation is essential, because it protects employees injured on the job. It also protects employers from dealing with a lawsuit if one of their employees experiences an injury. In most cases, when an employee gets hurt at work or on the job, they may require emergency medical treatment, a visit to the hospital or other medical treatment.
Payment for medical bills are necessary, whether the injury gets diagnosed as a partial or a permanent injury. Time away from work, missed work opportunities or lost wages often occur, as well, leaving the employee with expensive medical bills.
Unfortunately, some workplace injuries result in death. Not only does this event cause an emotional struggle on the loved ones, but this also creates a financial burden on the family or dependents of the deceased. Workers’ compensation helps reduce those financial burdens and takes care of potential funeral expenses.
How Does a Business Obtain Workers’ Compensation Insurance in Alabama?
It is important that all eligible businesses have workers’ compensation insurance. According to the Alabama Department of Labor, there are five ways employers can purchase workers’ compensation coverage:
- From an approved workers’ compensation carrier who will write an insurance policy
- From the Assigned Risk Pool when the insurance carriers refuse to write an insurance policy for the company
- Through a group self-insurance fund
- Through individual self-insurance
- Through an approved alternative workers’ compensation policy from an authorized insurance carrier