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The Basics of Worker’s Compensation

If you’re injured at work, you’re probably covered by worker’s compensation (WC) insurance. Laws vary by state, but in many states, including Michigan, employers must carry worker’s comp. 

If you’re a business, you need to know what worker’s comp WC covers, why you need it, and how to get it. Let’s dig into the basics. 

What’s Covered:

 WC covers work related injuries or illness.  

  • Missed wages:  If an injured or sick worker is not able to perform their assigned duties they will be compensated during that time. 
  • Medical expenses: Any costs that come from treating the injury or illness.
  • Rehab: If an employee needs ongoing care after initial care in order to return to work.
  • Death benefits: If an employee passes away in a work-related incident, limited death benefits will cover funeral and other costs. 

Injuries covered by WC must be work-related. This does not include normal commuting to and from work but would cover injuries sustained while traveling for work.

How It Works

When an employee is injured at work, they must report the incident to their employer as soon as possible. To be eligible to be covered by WC, incidents must be reported within 90 days. The employee will make a claim and the employer or WC carrier will either pay or deny the claim. In most cases, the only way a claim can be denied is if it’s found that the employee was injured as the result of misconduct. 

When It’s Required:

In Michigan, employers must carry WC if they have three or more employees at any time of if they have one employee working 35 hours of more a week for 13 weeks. While there are some exceptions, generally, if you’re paid to perform services, you’re an employee. Some farm workers and contractors don’t fall under this rule. 

How You Get It:

Call your Independent insurance agent.  The Holt & Dimondale Agency has qualified professionals on staff to assist you with all of your insurance needs.  

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