What expenses are covered by workers comp in case of a claim?
Workers comp typically assists with medical bills and lost wages resulting from a covered workplace illness or injury. Medical costs may be covered in full, while lost wages might be partially covered.
How does workers comp classify employees?
Workers compensation policies assess premiums partly on what work individual employees do, and this is done by classifying them. A standardized system developed by the National Council on Compensation Insurance (NNCI) is usually used. The system uses mostly 3- and 4-digit codes to denote different workers. For instance:
- 803: Financial auditors and financial analysts
- 2041: Chocolate and cocoa production employees
- 0005: Plant nursery employees
- 8829: Elderly rehabilitation or care center employees
- 7038: Small-scale tour boat employees
- 2143: Apple cider press employees
- 5190: Outside holiday decorators
As these show, some codes can be highly specific. It’s also common to have different employees classified under different codes if they don’t have the same position.
Can employees still sue if filing a workers compensation claim?
Having workers compensation doesn’t preclude employees from suing if they’re hurt while working per se, but it can greatly decrease the likelihood of a lawsuit.
Lawsuits come with high legal costs, long cases that don’t pay until resolved, and uncertainty if a suit goes to trial. Workers compensation normally provides a streamlined process, by which employees can be promptly compensated without an expensive legal battle. The coverage was developed largely to give employees fair and quick access to compensation.
Most workers compensation policies do have terms that prohibit employees from suing after they file a claim. While they might sue beforehand, it’s unlikely and they usually can’t afterward.