Workers’ compensation is insurance coverage provided by employers to cover injuries sustained by employees while on the job. This does not necessarily mean the employee has to be injured inside the company’s building. It can also cover injuries suffered off of the property as long as the employee is doing work, such as making deliveries.
Workers’ Compensation Coverage
Workers’ compensation insurance is designed to help cover medical expenses, disability, and treatment for the injured employee. It may also need to cover as much as two-thirds of their average weekly income if the injury results in any lost wages.
If there is a fatality involved, workers’ compensation should cover most of the burial costs as well as continuing to send a percentage of the employee’s wages to their spouse or other dependents.
The injuries sustained by the employee must be legitimately caused by something on the job to be covered by workers’ compensation. If the employee is under the influence of alcohol or drugs when the accident occurs, the claim will likely be denied.
Likewise, if there is any indication that the injury was intentional, that it was due to the employee not using correct safety procedures, or that it occurred somewhere else, the claim will probably not be approved. Rejected claims and unsatisfactory settlement offers can be appealed and further investigated by the Tennessee Bureau of Workers’ Compensation.
Is Workers’ Compensation Required in Tennessee?
Not all businesses in Knoxville, TN are required to carry workers’ compensation, but those that check any of the following boxes are required to do so:
- Those with at least five employees, even if some are family or just part-time.
- Construction and coal mining business, no matter how many employees you have.
IRM Insurance is happy to advise you on whether your business is required to carry this coverage. If you are required to carry workers’ compensation insurance and do not, you face pretty steep penalties, including fines, jail time, and even having to close the business down until you meet requirements.
For more information or your no-obligation consultation, give IRM Insurance in Knoxville, TN a call today.