Consequences of Not Paying Worker’s Compensation

Consequences of Not Paying Worker's Compensation

Worker’s compensation will place a burden on your company. Insurance providers are not going to underwrite you if you are obligated to repay funds to an insurance company for worker’s compensation. If an employee suffers from a permanent disability from an accident, he may receive compensation.

This compensation provided by the insurance company helps prevent the employee from suing the employer if he is injured while undertaking specific duties related to the job. Where the employee is suffering from an occupational accident, the payment shall begin from the first day of the judgment. Although the extent of injuries and situations covered is broad, there may be certain limitations and stipulations set forth. For example, compensation may be denied if the employee uses drugs or alcohol.

Bringing in a Worker’s Compensation Attorney

If the employee is filing worker’s compensation claims, then the employee can use the services of an experienced worker’s compensation attorney to ensure the employee gets adequate coverage. Compensation may also be withheld if the injury is self-inflicted or if the employee breaches a law or a policy of the company. Any employee injured at work has the right to claim compensation from the employers based on the injury.

Where an employee is found unfit by a physician, he may obtain an indemnity for a period from the first day following the date of the notice of incapacity up to on the date of his dismissal or reclassification. Potential loss of future income should be due to inability to return to work. Above all, the harm must be caused by the work itself or by the conditions of employment. Disability may be total or partial.

Compensation can sometimes lead to the maintenance of wages if stipulated by the provisions. Worker’s Compensation also covers permanent disabilities and long-term injuries and reimbursement of lost earnings for the duration of the injury. Throughout a period of temporary incapacity the victim may also receive a daily allowance. This will be to compensate for his loss of earnings, and thus the loss of his income.

Why a Compensation Plan Should be in Place

The need for workers’ compensation was realized at the dawn of the industrial era of the early twentieth century, when workers were found working with machines that could cause injury and that are dangerous to their well-being. If problems arise from undertaking a particular activity for a long time, then this form of compensation should cover it. Employers are usually required to comply with state laws. This means having an appropriate compensation program in place, making it mandatory for all businesses in the United States. Employees should be as clear as possible about the magnitude of their injuries. The duration of the payment of a supplementary allowance by the employer is subject to a ceiling.


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