Workers’ compensation insurance is paid by companies to provide benefits to employees who become ill or injured due to a work-related accident or exposure. Through this program, workers are provided with benefits, medical care, and employers have the assurance that they will not be sued by the employee.
This type of insurance is mandated by State Law, and within the jurisdictions of Maryland, Virginia and DC, different requirements become applicable for providing this coverage. For example, in DC you are required to carrier Workers Compensation if you have one employee, and in Virginia, you will need three employees. Also, in the District of Columbia, officers and directors are required to be included on the Workers Compensation policy with a mandated minimum payroll, Maryland and Virginia will allow officers to exclude themselves and their payroll from the policy, although there is a mandated minimum payroll if they elect to be included.
You must be an employee of a company that has (or was supposed to have) workers’ comp insurance. In some cases, an employer can be liable to provide the coverage for a non-employee, such as an independent contractor or subcontractor working on behalf of the business. You must also have been injured at work or because of job-related duties.
With proper job related training and an effective return to work program, employers can institute a proactive approach to cost containment, improve their ability to manage an injury claim and any restrictions, thus, assisting in reducing the lost time wages paid in a claim. These steps will look favorably with the insurance carrier, which may lead to cheaper classification rates.