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Understanding Where Workers’ Comp Benefits Come From

In the United States, there is a system in place to protect individuals who are injured while at work. This system is called workers’ compensation. If you are like most people, you do not think about workers’ comp most of the time. Most people assume that a work injury will never happen to them. However, it is important to have a good understanding of workers’ comp before you need to use it. A common question is, “Who provides the benefits?” This guide will fully explain the surprisingly complicated answer.

Filing a Workers’ Comp Claim

There are two different answers to the question of who provides the workers’ comp benefits. For any single workers’ comp case, the compensation will be provided by either:

  • A private insurance company
  • A state-run agency

The reason there are two different potential benefit providers is because there are two different systems in place. Some states use one system and some use the other. It is important to know what system your state employs, but you should also know that the system does not change what the filing process looks like for you. In either case, the only thing you need to do is report your injury to your employer. Your employer should handle the claim from that point onward.

Private Workers’ Comp

The first system places the responsibility of providing workers’ compensation in the hands of private insurance companies. Some companies only provide workers’ comp, while others provide it alongside other types of insurance. Each individual employer is required by the state to pay for workers’ comp coverage through a private provider of his or her choice. This allows employers to choose a company that suits the needs of the employees.

State Workers’ Comp

In some states, the state itself takes responsibility for providing coverage. There is a dedicated agency that handles all workers’ comp cases in the state. This system is far simpler because the employer does not need to do much of anything to receive coverage. Every worker in the state is automatically covered, assuming the employer has his or her business registered correctly and legally.

Remember, workers’ comp coverage is a right guaranteed to every employee in the United States. No matter which system your state uses, or what your employer has to say on the matter, you can have all the expenses related to your injury fully compensated. This means you do not need to worry about an injury hurting you financially. Contact a workers’ compensation lawyer, like a workers’ compensation lawyer in West Bend, WI, for more information on if you could possibly claim workers’ comp for your injury. 

Thanks to Hickey & Turim for their insight into understanding where workers’ compensation benefits come from.

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