What is No-Fault Work Comp Insurance?

July 26, 2023 • Previsor

Workers compensation insurance is often referred to as a form of ‘no-fault’ insurance. Work comp provides injury coverage to employees injured on the job, regardless of who is at fault for the incident. Here are a few reasons why work comp is considered no-fault and how it benefits you.

A simpler claims process 

Work comp systems are designed to streamline the claims process for injured workers. Employees can receive benefits quickly and efficiently by eliminating the need to prove fault. The employer files an incident report to the work comp carrier. The employee is covered by insurance benefits. 

Clearer responsibility  

Work comp laws place the responsibility for providing benefits on the employer, regardless of whether the employer was negligent. This means that even if the employee’s actions contributed to the incident, they are still entitled to receive work comp benefits.  

Benefit coverage 

Workers compensation typically covers medical expenses, rehabilitation costs, and a portion of the injured worker’s lost wages. These benefits are provided regardless of fault, ensuring injured employees receive necessary medical treatment and financial support while recovering from their injuries. 

Avoid lengthy legal proceedings 

No-fault work comp systems aim to avoid lengthy and costly lawsuits. Injured workers can receive benefits promptly rather than waiting for legal proceedings to decide who is responsible. 

It’s important to note that while work comp is considered a no-fault system, there are still limitations to the benefits provided. In most cases, employees are barred from suing their employers for additional damages beyond what work comp covers.  

July 26, 2023
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