How Does Workers’ Compensation Insurance Work?
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How Does Workers’ Compensation Insurance Work?

In the state of Minnesota, most employers must obtain workers’ compensation insurance to cover their employees. Like health insurance, workers’ compensation insurance pays for claims made against the policy.

Employers cover the cost of their insurance policies. In exchange, insurance companies pay for the medical bills and lost wages of employees injured while working for employers. For an employee to receive benefits from the insurance company, the employee must report the injury to the employer and the employer must make a claim with the insurance company.

Minnesota law defines an employer as someone who hires people to perform services. An employer can be an individual or a business. Employees are the people the employer hires to perform services. The law considers any person who performs work for hire to be an employee. This definition includes part-time workers, nannies and domestic workers, non-citizens, and minors. If an employer hires any employees, in most cases it must obtain workers’ compensation insurance.

Some employers do not have to get workers’ compensation insurance. These employers include people who are themselves employees or who employ relatives, if they meet additional requirements. Some officers of closely held corporations or managers of limited liability companies also do not have to get insurance. Other employers can meet strict financial requirements to become self-insured.

Once an employer obtains insurance, it must report workplace injuries to its insurance company. Insurance companies that provide workers’ compensation insurance have an incentive to deny these claims. They make more money if the employer continues to pay for a policy but the company never has to pay any benefits. Employers have little to lose if a claim is denied – their policy premiums will not go up. In short, the odds are stacked against injured workers from the start. An experienced workers’ compensation firm can help.

Need help getting workers’ compensation for your injury? Joe Osterbauer, Esq. and the Osterbauer Law Firm stand up for injured Minnesota workers’ rights. Joe’s 27 years of workers’ compensation experience and his team’s speedy service combine to get clients the results they need. To schedule a free consultation, visit Osterbauer Law Firm online or call Joe’s office at (612) 334-3434.