Who is responsible for providing workers’ compensation benefits?

When you suffer an injury at work, you expect to receive workers’ compensation benefits. Every state and every company may run their workers’ compensation benefits differently. Different states have different laws, as well as different insurers have different practices. With the variation of workers’ compensation systems, there are different ways that you might receive the money. If you receive benefits, you may receive them from the government, the insurer, your employer or a third party.

Insurance Companies

A lot of companies purchase workers’ compensation insurance from private companies. In most states, an employer can choose an insurance company to insure through and this company provides the insurance to companies of all sizes. Keep in mind that this is not the case for all states. In fact, some states don’t permit private insurance companies to send workers’ compensation benefits. Your best course of action when you don’t know who provides the workers’ compensation benefits is to speak with your employer or find out the state regulations ahead of time. If your employer does have private insurance, however, the insurer is who provides you your compensation.

State Programs

In many states, employers choose workers’ compensation insurance through state programs and insurance funds. The state’s department of labor, commerce or industrial relations tends to be the department that deals with these kinds of programs. Often, small businesses or those with few workplace injuries choose this type of insurance. In this case, the state department is who acts like an insurance company. In this case, you receive benefits from the state.

Self-Insurance

Now, in terms of self-insurance, a company has to be large enough that it can cover workers’ compensation. This means that the company has to be large and financially stable enough to cover any benefits that insurance normally would. These companies usually have to deal with oversight from the state so that the state can make sure that the business follows proper procedures regarding workers’ compensation.

Some self-insured businesses use a third-party administrator. This company administers workers’ compensation claims for the employer. This company deals with the claims processing, paperwork and management.

After suffering an injury at work, you deserve workers’ compensation. If you’re curious about who provides it, it all depends on how your employer seeks to insure him or herself. In addition, it depends on the laws and regulations in your state regarding workers’ compensation benefits. If you’re seeking workers’ compensation, call and consult with a workers’ compensation lawyer today.

Source: Broward County Workers’ Compensation Lawyer, Law Office of Franks, Koenig & Neuwelt

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