"Workers' Compensation (WC) is mandatory, employer-financed, no-fault insurance which ensures that employees disabled due to a work-related injury or disease will be compensated for lost wages and provides necessary medical treatment to return them to the workforce," according to the Pennsylvania Department of Labor & Industry. "The workers' compensation system provides an 'exclusive remedy' to employers and employees and is designed to simultaneously achieve the goals of safer workplaces, prompt compensation and treatment of those it protects, and reduced litigation costs to all parties."
Failure to provide WC coverage for employees can lead to heavy fines and civil and criminal prosecution.
"If you are injured in Pennsylvania, you are entitled to Workers' Compensation benefits if the injury occurred while you were in the course and scope of employment," one attorney explains. "However, the 'course and scope' issue is not always that simple, and in fact, is the basis for a lot of Workers' Compensation litigation."
WC claims for injuries that occur on the clock on the job site are typically relatively cut and dry. For example, if an employee is injured while using equipment at work, that is generally considered a work-related injury and covered under Workers' Comp. If an employee develops carpal tunnel syndrome after keying in data for years at work, that is probably a work-related injury covered under Workers' Comp.
That "course and scope of employment" can make WC claims a bit complicated. For example, what if an employee is injured in an accident on his way to or from an employer-sponsored event? What if an employee is injured while running an errand for their boss? Whether or not these are examples of injuries that occurred during the "course and scope of employment" thereby covered by WC is not always clear.
Typically, the following examples are covered under Workers' Comp:
An injury that occurs while commuting to and from work is typically not covered by WC Insurance.
Considerations for determining if an injury occurred in the course and scope of employment:
There are many nuances courts look at when determining whether or not an injury is compensable. For example, if an employee is injured while getting lunch, they are typically not covered under WC insurance. However, they are usually covered if they also pick up lunch for the boss.
You can't eliminate all risks to your employees, but here are some tips for minimizing the risk of injuries while traveling for work:
At American Insuring Group, we offer cost-effective worker's compensation insurance from various competing insurance companies. We'll work hard to get you the best price on quality insurance to protect your employees and business.
Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.