The Workers Compensation Policy

In the U.S., the workers’ compensation insurance policies protect and cover the potential expenses that can be associated with job-related illnesses and injuries of workers. While this is at state level, federal laws also require that employers carry a coverage policy that is relative to the risks associated with the job.

The workers’ compensation refers to a system of laws outlining specific benefits with the procedures for obtaining such benefits. These are contained in decrees and somewhat vary from on every state. The federal government however has special workers’ compensation laws for specific employees and workers on some industries such as railroad employees.

Do not be misled. To file a workers’ compensation claim is just similar to filing an insurance claim. This claim is more of a request for benefits and is not in any way a lawsuit against an employer.

The Core Values of Workers’ Compensation Laws

The workers’ compensation laws are designed to protect employees who are injured and ensure they receive their fixed monetary awards. They do not have to litigate their claims against their employers. This way workers’ compensation becomes the safety net for employees when injured on their jobs.

The workers’ compensation laws also protect the employer and employee. It limits the amount employees can recover from their employers while it prohibits in most cases injured employees from suing their co-workers.

Its core value is the no-fault system. The worker is simply covered for his or her work related injury without placing an issue on his or her negligence, the employer’s or a co-worker’s negligence.

In short, it is an exclusive remedy for work-related employee injury, unless otherwise the employee can point to a third party who contributed to his injuries.

There are some cases where workers injury were caused by faulty products or machinery equipments that they use at work. This situation can merit a lawsuit, mostly civil actions, to seek for compensation from its manufacturers due to its faulty products.

Employers May Recoup Payment as a Third Party Claim

In civil actions, employers are not directly involved in the third-party claims. However, employers or insurers can claim a payback for their monies paid in the workers’ compensation system from a lawsuit against a third party.

In some states, the workers’ compensation insurer and employer can enter into the lawsuit filed by an injured employee to seek and protect their rights to recover the sum of money paid through their obligation on the employee’s recovery from injury. In some states, the employer is even given a lien against the employee’s recovery, as an added precaution to ensure payment once the claim has been obtained.

In these cases however, the employer and insurer must wait until the employee has made a recovery or received the compensation from the manufacturer. Once the employee gets the settlement, the employer and insurer can assert their lien. The employee must pay back the sum of money which represents or duplicates the workers’ compensation benefits which was previously received, or sometimes still remain receivable as the case maybe.