Workers’ compensation insurance is one of the most beneficial coverages your business can have. If an employee gets injured while working, they may have medical bills from treatment, miss time from work or both. Workers’ compensation insurance can reimburse lost wages and cover medical bills related to injury or illness. This insurance is one of the best ways to take care of your employees if they experience a work-related injury or illness.  

What Is Workers’ Compensation Insurance? 

Workers’ compensation insurance covers several different expenses that occur due to an illness or injury that occurs while working. Coverage includes payments for: 


Each type of benefit varies in how it is paid. It also depends on the state in which the work-related injury or illness occurred.  

How Does Workers’ Compensation Insurance Work? 

Workers’ compensation laws vary by state, and employers must follow the state’s unique laws where they are located. An employee can only receive the benefits from this insurance if their injury or illness is work-related, meaning it occurred due to an event or exposure within the workplace. An employee could get coverage for injuries caused by the following: 

• Lifting heavy materials 

• Being struck by a falling object

• Suffering a chemical burn

If an employee is injured or ill due to a work-related event or exposure, they must report it to their supervisor immediately. The supervisor must file a report, which will start the workers’ compensation process. Failure to do so may result in a delay of benefits. If an employee experiences an injury at work because they were doing something outside the scope of their job duties, workers’ compensation insurance most likely will not apply. 

What Are the Four Types of Workers’ Compensation Benefits?  

There are four main types of workers’ compensation benefits offered in most states. These include the following:  

Medical Benefits  

If an employee becomes sick or injured due to their job, workers’ compensation insurance can help pay for medical treatment. Insurance can help cover the following costs:  


Sometimes care is needed to continue recovery. These costs are typically covered as well, but some types of alternative care aren’t always accepted. Check with your insurance agent at Matt Roenker Insurance Agency to see what’s covered under your policy.  

Wage-loss Benefits 

Sometimes a work-related injury or illness can leave an employee unable to work for a significant period of time. If this is the case, workers’ compensation insurance provides the following wage-loss benefits for the employee:  

• Temporary total disability—The injured employee is completely unable to work for a certain amount of time but will return to work at full capacity when possible. The period of time for payment depends on the individual state.

• Temporary partial disability—The employee can work at a reduced capacity due to physical limitations without needing time off.

• Permanent total disability—The employee is completely unable to work and unable to return to their previous role.

• Permanent partial disability—The employee can return to work, but they are unable to work at the same capacity as before the injury.

Depending on the state, each wage-loss benefit has its own limit. Workers’ compensation insurance wage-loss benefits can help the employee supplement lost income until they’re able to return to work in full capacity or until the employee hits the wage-loss benefit limit.  

Vocational Rehabilitation Benefits 

Workers’ compensation can provide an employee with vocational rehabilitation benefits to help them return to a job that is compatible with their physician-issued work restrictions. Vocational therapy can help employees learn new skills and return to work in a new position if they’re unable to perform their previous role after being injured.  

Death/Dependent Benefits 

In unfortunate circumstances, an employee may lose their life due to work-related injury or illness. Workers’ compensation benefits can cover funeral expenses and lost income up to a certain limit. In most cases, these benefits go to the spouse or dependents of the deceased.  

Why Is Workers’ Compensation Used? 

In most states, workers’ compensation insurance is required by law. If you choose to forgo this coverage, your business could be at high financial risk if it needs to pay for injuries out of pocket. Your business could also face fines for not carrying workers’ compensation insurance. Some states allow employees to sue businesses that do not have workers’ compensation in civil court, or employees might be able to collect money from a state fund.  

Workers’ compensation coverage not only protects your employees but your business as well. If covered by workers’ compensation insurance, an employee cannot sue you or your business in civil court.  

Contact Us Today! 

Matt Roenker Insurance Agency Inc. is a family-owned, family-operated agency dedicated to helping young families, individuals, senior citizens and military families find the insurance they need at a price they can afford. If you’re looking into workers’ compensation insurance, contact one of our agents today to get started. 

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