Worker's compensation is a form of insurance that provides wage replacement and medical benefits to employees injured while on the job in exchange for relinquishment of the worker’s right to sue for tort of negligence. Worker's compensation systems work differently state to state, but worker's compensation is paid for by employers of the state. Employers pay for worker's compensation in one of three ways:
Premiums to a State-Run Insurance Program
State-run programs are typically run by the state’s department of labor, commerce, or industrial relations. Employers may choose which program they wish to run if they are a part of a state-run program. Benefits will be paid out by the department responsible for that program. The state department acts like an insurance company in these instances.
Payments to an Insurance Company
Employers can select worker's compensation insurance through a private insurance company. If your employer has selected this route, your benefits will be paid for by that company.
Directly to the Employee
“Self-insured” employers must be large enough to prove that they are able to pay for the expected worker's compensation These employers typically use third-party administrators. This third party is usually in charge of the paperwork, management of claims, and sending funds to the injured worker after the employer pays the due amount.
If your employer is self-insured and you believe you are not receiving the compensation that you require, contact an experienced attorney at Robbins, Strunk, and Cramer.
We firmly stand by worker's by holding employers responsible for their employees’ injuries and will assist in securing financial assistance for medical bills and lost wages.