Workers Compensation Insurance
RMIN 3007 Objective Paper
William Chambers

Objective Paper
Need for Workers Compensation
Will Chambers
RMIN 3007
Dr. Berry

Introduction
The United States of America is is carried on backs of the blue-collar citizens working everyday to earn a living. According to a 2011 survey on census.gov by Enterprise Employment Size, businesses in the United States employed nearly 113,425,965 workers. When any one of those 113 million employees was injured the individual needed a source of income to continue to live while recovering from their injuries. From death, to illness, to injury, workers compensation has coverage that allows peace of mind. Injuries like strains, broken limbs, Doctors visits, medication, surgeries, equipment such as wheelchairs, counseling, pain therapy, and acupuncture are covered. All of these are basic necessities to be able to not only recover from injury but also help workers get back to working health so they can make a living. Insurance is not just about money and insurance companies trying to spend as little money on the claim as possible. One of the most important parts of insurance, especially workers compensation insurance, that people over look is that it is there to help people after their accident to help get them back to work.
Workers compensation insurance provides a source of income to keep the working class sustained when they are unable to work. Workers compensation insurance, “provides coverage for injury or disease sustained by employees arising in the course and the scope of their employment, regardless of negligence,” (Erie, pg.. 1). Workers compensation insurance may protect employers by limiting an employee’s need to use litigation to recover compensation for their injuries. . Workers compensation insurance covers hospital and medical bills that are necessary to diagnose and treat injuries sustained on the job. The insurance also pays a part of the beneficiary’s income to cover other bills, and sometimes, “can pay for rehabilitation, retraining, and other benefits as well,” (Does, pg. 1). Dependants of beneficiaries killed on the job may be eligible to receive death benefits through workers compensation insurance.
The insurance world has many markets with billions of dollars in business available to companies. The top 20 largest workers compensation insurers combined generate almost 25 billion dollars in annual? premiums. An article produced by Business Insurance shows the 20 largest workers compensation insurers by premium volume.
1. Liberty Mutual Holding Co. $4.1 Billion
2. American International Group $3.6 Billion
3. Travelers Cos $2.8 Billion
4. Hartford Financial Services Ltd $2.4 Billion
5. Zurich Financial Services Ltd $2.4 Billion
(Top 20, pg. 1)
Description of Coverage
Workers compensation insurance is run through, “The Department of Labor’s Office of Workers' Compensation Programs (OWCP). OWCP is split into four programs covering a variety of losses:
Wage replacement benefits
Medical treatment
Vocational rehabilitation
Other Benefits
(Workers, pg. 1).
IT IS BETTER TO FOLLOW THE ORDER YOU LISTED ABOVE WITH the SUPPORTING PARAGRAPHS!
Wage Replacement Benefits
The main job of wage replacement benefits is to pay for opportunity cost of not working due to injury. Because not all injuries are the same and people heal differently, the amount of disability is gauged by categories.
Temporary total disability is where you are not able to work, but only for a relatively short period of time. This is the most common claim of disability. Workers in this category are normally considered 100% disabled.
Temporary partial disability is where you are only able to do a portion of your job for a relatively short period of time. Workers in this category are normally considered 70% disabled.
Permanent total disability is where the worker is never able to return to work. This does not mean the worker is classified as 100% physically or mentally disabled