Workers’ Compensation vs. Other Insurance

Almost all states in the United States require employers to provide Workers’ Compensation to their employees. However, not all Work Comp coverage has the same provisions since they differ per state. The challenge is how does an employer choose the best coverage for their team? Why should an employer choose Workman’s Compensation insurance over other private health insurance and disability insurance?

Workers Comp

Workers’ compensation provides medical care and wage replacement for the employee while he recuperates. It provides disability benefits, which may either be temporary or permanent, depending on the result of the employee’s injury. In case of death, the funeral and death benefits will be given to his dependents.

Health Insurance

Health insurance, however, helps cover medical expenses for non-work-related illnesses or injuries. It is a must for all Americans to have minimum health insurance or be penalized under the Affordable Care Act of 2014. Business owners may still include this provision for their employees, whether in whole or subsidized, with their employees paying the other half.

Disability Insurance

 Disability Insurance is voluntary insurance that gives coverage to the person in case they get sick or have an accident outside work. This program partially covers their lost income for rent or food until they can return to work.

Private Health Insurance

Although all three programs aim to provide coverage for the employee, they do not offer the same benefits. Private Health Insurance can only cover medical benefits and not the lost wages and death benefits that Workers’ Compensation offers.Disability insurance, on the other hand, is designed to replace the lost income of employees who get injured or ill outside of work. It is voluntary and is given only until the employee can report back to work.Meanwhile, the Workers’ Compensation insurance is regulated by the State. The benefit can go from temporary or while the employee is recuperating, to for life if the injury proves to have a permanent effect.