What types of expenses does workers’ compensation insurance cover?

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What types of expenses does workers’ compensation insurance cover?Although the payments are usually modest, workers’ compensation insurance covers

  • medical care from the injury or illness
  • replacement income
  • costs for retraining
  • compensation for any permanent injuries
  • benefits to survivors of workers who are killed on the job

If a person collects workers’ compensation benefits, he or she cannot sue the employer and workers’ compensation benefits do NOT cover pain and suffering. Wage replacement is usually two/thirds of the worker’s average wage, but there is a fixed maximum amount that the benefits will not exceed. That may seem modest, but note that these benefits are not taxed. So, as long as the employee was making a fair wage, he or she should have no major problems. The eligibility for wage replacement begins immediately after a few days of work are missed because of a particular injury or illness.

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