Three Types of Workers’ Compensation

State Laws mandate that employers are responsible for payment of benefits for injuries of their employees while on the job. Some States require that employers must buy workers compensation insurance. Other states merely place the responsibility on the employer, and let the employer decide whether or not to purchase workers compensation insurance. It’s never a good idea when you think you can pay a $6 million claim from your business operations. It’s always best to purchase Workers Compensation insurance regardless of what your state law states. Some states require coverage if a business only has one employee or at other times four employees. You can turn to MPR-Fintra, Inc. to give you a no obligation overview of what your business needs to do. Here are some features of Workers Compensation Coverage:

• Medical-only coverage. From the name itself, it is medical-only. This coverage is part of the Workers Compensation policy. The insurance company pays for the worker’s medical costs after an accident or other incidents.


• Temporary disability coverage. This is one of the most common types of benefits under workers’ compensation. It’s a type of coverage that provides payment to a worker who is unable to work. However, it only applies if the employee suffers an injury or illness resulting from a work-related task which keeps them off the job for a specified number of days. Then Temporary disability is paid during this period.


• Permanent disability coverage. This is for instances where an employee can no longer work at all. Like the previous coverage, it only applies if the injuries were brought by work-related tasks. Permanent disability can be either Permanent Partial Disability or Permanent Total Disability. Payment schedules are controlled by the states.

For companies which have had high premiums and low losses, the best option is captive insurance. This is an excellent method for risk management because, through this, a company is able to cover its risk, generate tax savings, and earn profits from its own experience. If you are looking to insure your business, give us a call about contractors insurance solutions in Florida a call. Dial 561-338-7488 to get in touch.