Which of the following statements is not true about workers compensation insurance

What Is Workers' Compensation?

Workers’ comp can protect your business and your employees by helping cover:

• Missed wages if your injured or ill worker needs time off from work while they recover.
• Medical expenses to treat your injured or ill employee.
• Vocational rehabilitation if your worker needs ongoing care to help them get back to work.
• Death benefits, like funeral costs, if a worker passes away in a work-related incident.

Workers' Compensation Laws by State

Each state is in charge of their own workers’ compensation program. This means state laws for workers’ comp can be different depending on the location of your business.

Each state sets their premium amounts and benefits based on their economy and the risks their businesses face. For example, Alaska has one of the highest average premiums in the country because they have so many lumberjacking businesses, and lumberjacking is a high-risk occupation.

Your state will also decide who sells and handles workers’ comp policies. This can be:

• State-run agencies
• Private insurance companies
• The state itself

Some states also have secondary injury funds that help cover disabled workers if they’re injured on the job again. This makes it easier for employers to hire workers who have been injured before.

For example, you run a shipping yard and hire a former nurse who hurt his back on the job years ago and had a workers’ comp claim. Their injury might make him more susceptible to reinjury, and if that happens, a secondary injury fund can help pay the costs. Without this fund, businesses may be hesitant to hire a worker like this.

So What Do Workers’ Compensation Insurance Laws Look Like for Different States?

California law says every person and apprentice working for an employer must have workers’ comp. This includes employees with oral and written agreements. It also includes lawfully or unlawfully employed workers. California doesn’t require children and spouses to have coverage. It also doesn’t require coverage for:

• Deputy sheriffs
• Volunteers
• Amateur sports officials
• People working in exchange for aid or food

Florida requires every person working for another person, group, firm, or corporation to have workers’ comp. This includes people working under any type of contract, even implied contracts. The requirement also includes all lawfully and unlawfully employed immigrants and minors. Florida doesn’t require coverage for:

• Licensed real estate brokers
• Musical theater performers
• Temporary workers
• Most independent contractors, with the exception of construction workers

There is a bit of a gray area in the Florida laws for volunteers, sports officials, chauffeurs or other drivers. For more information on these workers, visit the State of Florida’s Workers’ Compensation page.

Illinois workers’ comp laws say every person working for someone else, or under a contract, must have coverage. Employees working hazardous jobs receive coverage automatically by law.

In Illinois, you do not need to provide coverage for:

• Real estate brokers
• Sales people working on commission
• Farmers
• Jurors

New York requires all employees working at for-profit companies to have workers’ comp coverage. This includes employees that are:

• Part-time
• Borrowed
• Leased
• Family members
• Volunteers

Most employees working for nonprofit businesses also need to have workers’ comp insurance, as well as: 

• State workers
• Domestic workers
• Public school teachers
• Farmers who make more than $1,200 a year

Some employees that are exempt from workers’ comp include:

• Volunteers
• Most religious employees
• Certain real estate workers
• Media sales employees
• Insurance agents who work as independent contractors

Texas doesn’t require private employers to provide workers’ compensation insurance. As an employer, if you don’t have workers’ compensation coverage, you must report your coverage status and any work-related injuries or illnesses to the state;s Division of Workers’ Compensation.

If you do have workers’ comp coverage, and one of your employees suffers a work-related injury or illness that keeps them out of work for at least one day, you need to report it. This holds true even if you do not have insurance coverage. If you don’t, you could face penalties.

What Types of Injuries Are Covered by Workers' Comp?

If your employee gets injured on the job, or while acting on your behalf, workers’ comp can help. For example, if they get in an accident while driving to make a delivery to your customer, workers’ comp can help pay their medical costs.

Workers’ comp can also help cover injuries from work-related:

• Violence
• Terrorism
• Natural disasters

About 30% of workers’ comp cases are sprains and strains.1 These usually happen while lifting something heavy. In most cases, these injuries take about 12 days before your employee can return to work. Jobs and activities that see the most sprains and strains include:

• Labor
• Freight
• Stock
• Material moving
• Nursing assistants

The second highest percentage of workers’ comp cases are for falls, slips and trips. These make up 27% of claims.2

Workers’ comp doesn’t only include workplace injuries, either. It also helps cover employee illnesses, like someone getting sick from chemicals at work.

What Doesn't Workers' Compensation Insurance Cover?

Depending on your state laws, workers’ comp plans don’t usually cover an injury or illness that:

• Happens in a fight your employee caused
• Is intentionally caused by your employee
• Happens to an employee who is intoxicated
• Is emotional and has no physical trauma
• Takes place during your employee’s commute

Workers’ comp will also not help protect you if an employee sues your business for:

• Gross negligence
• Malicious intent
• Discrimination
• Failure to promote
• Wrongful termination

How Does Workers' Compensation Protect My Business?

Workers’ comp can help protect your business by:

• Providing benefits to your employees that have work-related injuries or illnesses
• Limiting your business’ liability in lawsuits for work-related injuries or illnesses
• Making sure you’re following your state’s workers’ comp laws
• Helping injured employees get back to work in their old role or a new one

The laws in your state will determine the details of your workers’ comp coverage, including:

• The amount of benefits
• Types of injuries that are covered
• How benefits and care are provided

It’s important to know that some workers’ comp policies don’t provide coverage for multiple states, or for workers that travel to different states. Workers’ compensation coverage is essential for each state where your employees work.

Will Workers' Comp Cover Me If An Employee Sues Me for Getting Hurt on the Job?

Workers’ compensation is a no-fault system, which means injured or ill employees can receive compensation, but they give up their right to sue their employer. However, there are exceptions. Workers’ comp doesn’t provide coverage if you intentionally harm an employee through:

• Assault
• Battery
• Defamation
• Fraud
• A tort injury, like emotional distress

Who is Required to Carry Workers’ Compensation Insurance?

Certain businesses may also be exempt from their state’s workers’ compensation law, depending on the type of work you perform and the status of your workers. Some examples of workers who may fall under a workers’ compensation exemption include:

• Employees who work on commission
• Certain real estate agents and insurance sales representatives
• Employees who are family members
• Part-time workers
• Volunteers
• Those who work in exchange for food

In some states, you may not need to provide workers’ comp if you have fewer than a certain number of employees.

No matter what type of business you run, workers’ comp is a great way to protect both your business and your employees. To get the coverage you need, get a quote today.

This article provides general information, and should not be construed as specific legal, HR, financial, insurance, tax or accounting advice. As with all matters of a legal or human resources nature, you should consult with your own legal counsel and human resources professionals. The Hartford shall not be liable for any direct, indirect, special, consequential, incidental, punitive or exemplary damages in connection with the use by you or anyone of the information provided herein.