(ThyBlackMan.com) If you are starting a business in which you are going to have employees, you are going to need workers comp insurance. This specific type of insurance will protect your employees in the event that they are hurt on the job. It will pay their hospital bills, it might even pay some of their lost wages, and it might even cover you as the employer in the event that the employee wants to sue. Maybe you are an employee applying for workers comp insurance. Whatever the situation is, you are probably wondering who actually pays this money out to the employees. Is it the employer or the insurance company of the state?
Varies From State To State
The first thing that employers and employee need to know about workers comp insurance is that it varies from state to state. 
Workers comp insurance is typically managed in one of three ways. This could be state-run programs, insurance companies, or direct payment to the injured employee. Anyone that receives workers comp benefits should know that these benefits may or may not come from your employer.
State-Run Programs
There are some states that offer state-run programs. In these situations, the employer may be able to choose to obtain workers comp insurance through a state-run program or insurance fund. These types of programs are usually offered by the state’s department of labor, commerce, or industrial relations. However, most of the time these programs are only available to small employers in an industry where there are few workplace injuries. When an injury takes place in the workplace it will be the state that pays the compensation.
Insurance Companies
Most employers will go through an insurance company to acquire workers comp insurance. These insurance policies are available to companies of all sizes and risks. However, a company with a greater risk or higher history of risk in the workplace will have to pay more for coverage. In these cases, the employer will contact the insurance company, get a quote, and decide if they want to sign up for the policy. If they sign up with this specific insurance company they will be required to pay a monthly premium for this coverage. When an employee gets injured on the job it will be the insurance company that pays for the compensation. That being said employees really have to be careful in these situations because some insurance company will use dirty tactics to avoid payouts. In these situations, employees should consider a reliable workers compensation lawyer that is willing to fight for their needs.
Self-Insurance
If an employer wants to get a self-insured workers comp policy they are going to have to prove to the state that they are large enough with sufficient assets to cover the expected liability. A lost of states will also require these types of companies to submit to considerable oversight by the state to ensure that the proper procedures are being followed. This type of policy works similar to insurance payout. An employer with sign up with a third-party administrator and when the employee is injured it will be the third-party that handles the paperwork and payouts.
Staff Writer; Craig Jones
