LIFESTYLE

Understanding the Main Types of Workers Compensation

Worker’s compensation is a system that provides benefits to employees who are injured or become ill as a result of their job. The benefits provided by worker’s compensation can include medical expenses, income replacement and death benefits.

There are three main types of workers compensation: common law, statutory benefits and workers’ compensation insurance. This blog post will discuss the differences between these three types of worker’s compensation. We will also give examples of scenarios so you can better understand them.

Common-Law

Common law is the most basic among all the types of worker’s compensation. It is available to employees who are injured or become ill as a result of their job but do not meet the eligibility requirements for statutory benefits or workers’ compensation insurance.

Examples:

  • An employee slips on a wet floor and injures himself or herself. The employer may not be liable for the injury under worker’s compensation law, but the employee may still be able to sue the employer for negligence.
  • An employee is diagnosed with a work-related illness but does not meet the eligibility requirements for workers’ compensation insurance. In such a case, the employee may still be able to sue the employer for damages.

Statutory Benefits

Statutory benefits are worker’s compensation benefits that are available to all employees, regardless of whether they are injured or become ill as a result of their job. These benefits include income replacement, medical expenses and death benefits.

Examples:

  • An employee gets injured as a result of a car accident while on the job. The employee is eligible for income replacement under worker’s compensation law.
  • An employee dies as a result of their job. The employee’s family is eligible for death benefits under workers’ compensation law.

Workers Compensation Insurance

Workers’ compensation insurance is a type of insurance that covers employees who are injured or become ill as a result of their job. This type of insurance is available to all employees, regardless of whether or not they are eligible for statutory benefits.

Examples:

  • An employee gets injured in a vehicular accident while on the job. The employee is covered by workers’ compensation insurance and is eligible for income replacement and medical expenses.
  • An employee dies as a result of their job. The employee’s family is covered by workers’ compensation insurance and is eligible for death benefits.
  • An employee is diagnosed with a work-related illness but does not meet the eligibility requirements for workers’ compensation insurance. The employee is still covered by workers’ compensation insurance and is eligible for medical expenses.

As you can see, each type of worker’s compensation has its own eligibility requirements and benefits. If you are ever injured or become ill as a result of doing your job, be sure to check with your employer to see what type of worker’s compensation is available to you. 

Should you have any questions or need advice on anything related to worker’s compensation, it’s always best to reach out to a reputable compensation lawyer.

Michael Caine

Michael Caine is the Owner of Amir Articles and also the founder of ANO Digital (Most Powerful Online Content Creator Company), from the USA, studied MBA in 2012, love to play games and write content in different categories.