Workers comp insurance is a form of compulsory insurance carried out by most of the businesses. This type of insurance came about due the need to protect the most important players in every industry – the employees. Whilst you count on employees to provide you with knowledge, expertise and service that will take your business to the next step, they count on you to protect them in case the unexpected happens. This is why as an employer you need to have workers compensation insurance.
Apparently, accidents in the workplace cannot be completely avoided. Workers compensation insurance will become handy during these unavoidable circumstances. For instance, if an employee gets injured in the course of restocking the supply room, workers compensation insurance will meet hospitals bills. Alternatively, if the employee’s eyesight is affected because of spending too much time on the computer, workers comp insurance will take care of that.
Whilst plans among jurisdictions differ significantly, some provisions can be made to include weekly payments in form of wages. Normally, damages for suffering and pain as a result of employer negligence are not available in most workers compensation plans. Consequently, it is very important that you understand what is entailed in a work compensation plan.
In as much as ames iowa workers compensation insurance is beneficial, fraud cases are rampant. This has seen billions of money spent in unnecessary legal fees, surveillance and litigation. Lawyers, doctors, employers, and even insurance company employees are responsible for workers compensation frauds. However, this is not to say that claimants do not engage in fraud. As a matter of fact, the most recent cases have been linked to claimants. Here are the most common forms of fraud by workers:
1. Remote injury
This is where the workers are injured outside the workplace, but claim to have been injured in the workplace so that the compensation policy will cover for their bills.
2. Inflating injuries
This is where a worker sustains minor injuries, but insists that the condition is severe so that they can stay away from work.
3. Faking injury
This is where a worker fakes injury that never happened and goes ahead to claim workers compensation.
4. Old injury
A worker with old injury claims to have sustained the injury recently with an intention of benefiting from workers compensation.
Workers compensation insurance plays an important role in taking care of the unexpected situations. As such, before employees commit themselves to long-term contracts; it is important that they establish whether their employers have a liability to pay for compensation. In case the employer no longer exists, or is insolvent, compensation will be provided directly by the insurer.