What Employers Need to Know about Workers’ Compensation

July 15, 2019
Woman writing at her desk. Sandy Spring Insurance Workers' Compensation.

Sandy Spring Insurance is a full-service, independent agency that offers all lines of personal, business and life insurance to clients across Maryland, Northern Virginia and D.C. Through our affiliation with Sandy Spring Bank, we have a unique and informed understanding of our clients’ financial picture, which allows us to develop comprehensive solutions to meet our clients’ banking and insurance needs.

In the event that one of your employees gets injured on the job, workers’ compensation insurance will cover his or her medical costs and some wages during the recovery period.

The Basics
Workers’ compensation insurance benefits are available to employees who are injured or become ill as a result of a work-related incident. If one of your employees is injured on the job and is medically authorized to take time off from work, he or she will be partially reimbursed for lost wages and all of the medical expenses related to the treatment and rehabilitation.

What are the reporting procedures for injuries and illnesses?
If employees are injured, they should notify you immediately to file a report. This will initiate the process for receiving workers’ compensation benefits. 

How are employees reimbursed?
Lost compensation is payable during the time period in which employees are authorized by their treating physicians. Benefits are paid weekly at a state-specific percentage rate of their average weekly wage, up to a maximum dollar amount. There is also a state-specified waiting period before benefits are available.

What is an independent medical exam (IME)?
An IME is an exam by a medical professional other than the physician who first examined an injured or ill employee. As the employer—and insurance carriers—you can request an IME to confirm an original diagnosis and treatment plan. 

What happens if employees do not comply with recommended treatments?
Non-compliance with recommended medical treatments, therapy or return-to-work plans may jeopardize workers’ compensation benefits.

Tips for Controlling Workers’ Compensation Costs
It is critical that you communicate to your employees the importance of maintaining a safe workplace and ensuring their health and wellbeing. This will also help you ensure the financial health and wellbeing of your company. Here are some things to consider about how to approach workers’ compensation at your company: 

  • Implement a return-to-work policy in which employees work modified duty, with their doctor’s consent, until they are fully healthy to do their jobs.
  • Orient and train your employees on safe practices necessary for their job functions and tasks. 
  • Insist that employee claims are reported promptly. 
  • Investigate the cause of injuries and illnesses to reduce risks in the workplace.
Contact Us & Learn More

Contact Sandy Spring Insurance's team of experts at 410.897.5800 to learn more about how this coverage can help you protect your home-based business.

You can also visit us at www.sandyspringinsurance.com.

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This material is provided solely for educational purposes and is not intended to constitute tax, legal or accounting advice, or a recommendation for any particular transaction.