Our health is our greatest wealth. When we say health, it’s not just about the physical but also mental, emotional and even spiritual. Having a holistically healthy body makes us feel good and positive. We can work well when we are healthy. We can serve our families well when we are healthy.
In line with the “health is wealth” saying, it is just fitting that we protect ourselves and also our families by getting a health insurance and a workman’s compensation. Is it necessary that we get both, will not one be enough to give us medical coverage? That is an interesting question that this blog aims to answer. Let’s tackle about the difference between Workers’ Compensation and Health Insurance.
A Workers’ Compensation is an indemnity insurance regulated by laws, that employers of big or small businesses in the U.S. must provide their employees. In some states, part-time workers and contractors are included. This indemnity insurance covers any kind of workplace injuries, illnesses, and deaths. It provides medical benefits for the employees who encounter an accident while performing a task at work, also the lost wages in the event that the employee will be in disability. If the workplace injury or illness causes the employee’s death, the coverage will also pay for the funeral of the deceased and will give financial assistance to the bereaved family.
There is no such thing as a safe place for work. Every workplace has its unique dangers, but some are very common and general.
In general, a Health Insurance is a medical benefit that covers injuries and sicknesses not related to work. This is not mandated by the government but is highly recommended. Some employers offer this as part of the compensation package that a hired employee will receive. Some people apply for it to separately, especially those who are freelance workers, independent contractors, or business owners without employees.
A specific Workers’ Compensation law is limited to the state only. Though it is required by all states, each state has its own ways of implementing its Workers’ Compensation Act. If you’re interested in knowing the specific laws about Workers’ Compensation in every state, you can check the website of U.S. Department of Labor’s State Workers’ Compensation Officials.
Unlike the Workers’ Compensation, Health Insurance policies are not limited in one state. It may be the same across the country or nations where its products and services are available. Even so, Health Insurance has limited list of injuries or sicknesses that it can cover. Also, it does not pay for the lost wages of the employee. It only covers the medical tests, treatment, rehabilitation, initial and follow up checkups, medicines, or hospitalization.
To best protect the business and its hardworking employees, the employer must have the combination of both Workers’ Compensation and Health Insurance. Talk to your insurance agent or health insurance provider to know and understand the specific coverages you have with each indemnity insurance.
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