Workers compensation is a type of insurance that provides benefits to employees who are injured or become ill as a result of their job. However, there are some risks associated with workers compensation, such as disputes over liability, insurance fraud, adverse medical outcomes, financial hardship, and psychological stress.
There are several risks associated with workers compensation.
- Disputes can arise over whether the employer is actually liable for an injury or illness.
- Workers’ compensation payments are also susceptible to insurance fraud. An employee may falsely report that an injury was sustained on the job, exaggerate the severity of an injury, or invent an injury.
- Injuries involving a week or more off work lead to average lost earnings of around 20% over at least 10 years following injury.
- Only between one-half and three-fourths of injured workers eligible for workers’ compensation cash benefits actually receive them.
- Companies with robust benefits plans that include such perks as employee assistance and leave programs have a better handle on the risk of complicated workers’ compensation claims that include stress and anxiety.
For example, a construction worker or electrician would be considered higher risk than an office worker.
Risks Involving Workers Compensation
- Disputes over liability: One of the biggest risks associated with workers’ compensation is the possibility of a dispute over liability. This can happen when there is uncertainty about whether the injury or illness was caused by the job or by some other factor. In these cases, it may be necessary to go to court to determine who is liable.
- Insurance fraud: Another risk associated with workers’ compensation is insurance fraud. This can happen when an employee exaggerates or fabricates an injury in order to receive benefits. It can also happen when an employer fails to report an injury or illness, or when an employer tries to deny benefits that are rightfully owed to an employee.
- Adverse medical outcomes: Workers compensation can also be risky for employees who are injured or become ill on the job. This is because they may be forced to see doctors and receive treatment that is chosen by their employer’s insurance company. This can lead to adverse medical outcomes, such as delayed or inadequate treatment, or treatment that is not in the best interests of the employee.
- Financial hardship: Workers compensation can also lead to financial hardship for employees who are injured or become ill on the job. This is because they may be unable to work for a period of time, and they may not be able to collect full wages while they are recovering. This can lead to financial problems, such as mounting medical bills, lost income, and debt.
- Psychological stress: Workers compensation can also lead to psychological stress for employees who are injured or become ill on the job. This is because they may experience anxiety, depression, and other mental health problems as a result of their injury or illness. They may also experience stress due to the uncertainty of their financial future, the challenges of returning to work, and the ongoing legal process.
If you have been injured or become ill on the job, it is important to be aware of these risks. You should also be aware of your rights under workers’ compensation law. If you have any questions, you should contact an attorney who specializes in workers’ compensation law.
Here are some tips for protecting yourself from the risks associated with workers compensation:
- Keep good records: If you are injured or become ill on the job, it is important to keep good records of your injury or illness. This includes keeping track of all medical bills, lost wages, and other expenses. It is also important to keep track of all communication with your employer and the workers’ compensation insurance company.
- Get legal advice: If you have any questions about your rights under workers’ compensation law, you should get legal advice from an attorney who specializes in workers’ compensation law. An attorney can help you understand your rights and can help you protect yourself from the risks associated with workers compensation.
- Be aware of your rights: It is important to be aware of your rights under workers’ compensation law. Your rights may vary depending on the state in which you live. However, some of your general rights may include the right to:
- Receive medical care
- Receive lost wages
- Receive permanent disability benefits
- Receive death benefits
Learn more:
1. investopedia.com
2. epi.org
3. businessinsurance.com
4. forbes.com
5. business.libertymutual.com
If you have been injured or become ill on the job, it is important to know your rights and to protect yourself from the risks associated with workers compensation.