What is Workers Compensation Insurance?
When employees suffer from work-related injuries or illnesses, their employers are often held responsible for any medical bills and/or lost wages that are a result of the injury or illness. Workers compensation insurance policies help Vermont businesses mitigate potential expenses like these.
Although it’s purchased by businesses, workers compensation insurance has benefits for both employees and employers. Employees get the reassurance that they’ll be reimbursed for covered expenses should they suffer a work-related injury or illness. Employers don’t have to worry about paying employees for covered expenses if a legitimate claim is filed.
Does Workers Comp Cover All Employees?
Workers comp normally covers employees regardless of whether their full- or part-time, and irrespective of how long they’ve worked for an employer. Employees are typically workers who receive a W-2 form for their annual income taxes.
Because workers comp generally only covers work-related injuries, employees who are injured on company property but not working might not be covered by workers comp.
As an example, consider a retail employee who goes shopping at the store where they work. If the employee falls and fractures a bone while shopping and not on the clock, workers comp might not apply since the injury didn’t occur when the employee was working. Instead, general liability insurance or another coverage might offer protection.