What is Workers' Compensation Insurance?

is a type of insurance that your employer purchases in order to pay for your medical bills and lost wages in the event that you are injured while on the job. This insurance plan covers your medical bills, and will pay you 70% of you average weekly wage if you are unable to work.

If your employer carries workers' compensation insurance they are providing you with adequate financial assistance for your injuries, HOWEVER they are also limiting their liability. By carrying the state run workers' comp plan, your employer gets nearly complete immunity from a lawsuit in exchange for providing you with workers compensation benefits. Simply put, you cannot sue your employer IF they carry workers compensation insurance. You are only afforded the benefits under the workers compensation system which are medical benefits and a limited portion of your lost wages. In addition, there is no lump sum settlement under workers compensation. If you are permanently disabled, the workers compensation insurance carrier may pay you a small payout once you have reached maximum medical improvement (MMI). This payout is based on the impairment rating that you are assigned. The impairment rating is based on a formula of three (3) week's pay for every 1% of permanent impairment, as determined by the workers' compensation doctor.