Who Pays for Workers’ Compensation?

Workers’ compensation benefits are a form of financial protection for workers who become injured or ill on the job. These benefits are funded in one way or another by workers in the state where they are employed. If you are hurt at work, you can receive benefits from a few different sources: your employer, your state government, an insurance company, or a third-party administrator acting on behalf of your employer. Wherever your benefits come from, the process for applying for them and receiving them is the same. Let us take a closer look at the different agencies involved in managing Pennsylvania workers’ compensation claims:

Insurance Companies

In most states, employers purchase workers’ compensation insurance from private companies. Many well-known insurance companies offer this service to companies of all sizes in all industries across the country, except in the few states where private companies are not permitted to provide this type of insurance.

Self-Insurance

Companies with the the resources to do so may opt to “self-insure” or cover the costs of workers’ compensation liability for their workers themselves. These companies are subject to strict oversight from the state to ensure workers receive all of the benefits they are entitled to.

Most self-insured companies utilize the services of a third-party administrator to oversee the work injury claim process. Because self-insured employers have the greatest financial risk at stake when facing workers’ compensation cases, they are often quick to utilize all of their resources to dispute a claim.

State Programs

A third option for workers’ compensation benefits is a fund or insurance program run by the state. State-run programs are usually administered by the departments of commerce, labor, or industrial relations. These programs are run like any other insurance companies. Employers pay premiums into the insurance company. When a worker is injured, they determine the amount of benefits owed and pays them out to the employee.

In Pennsylvania, there are strict procedures and deadlines for workers’ compensation claims. Injured workers who do not report their injuries or proceed with the claim process according to company procedures and state guidelines may risk losing these important benefits. To learn more about your rights and how to protect the benefits you deserve, it is always smart to consult a Philadelphia workers’ compensation lawyer for legal guidance.

Philadelphia workers’ compensation lawyers at Freedman & Lorry, P.C. advocate for Pennsylvania workers who have become injured or ill on the job. Employees who are unable to work face not just the physical pain and limitation caused by a work accident, but medical bills and lost wages as well. Workers’ compensation benefits are designed to cover these costs and protect individuals and their families from the financial devastation of a work injury or illness.

Philadelphia Workers’ Compensation Lawyers at Freedman & Lorry, P.C. Represent Injured Workers in Pennsylvania

If you were hurt at work and have questions about moving forward with a work injury claim, contact a Philadelphia workers’ compensation lawyer at Freedman & Lorry, P.C. We will assess your case and recommend the next step to take to pursue benefits while you are unable to work. Call 888-999-1962 or contact us online to schedule a free consultation with a Delaware County workers’ compensation lawyer today. Our offices are located in Philadelphia, Pennsylvania, Cherry Hill, New Jersey, and Pinehurst, North Carolina to serve you.