Workers' compensation insurance covers losses related to work-related injuries. When one of your employees is injured at work, you need workers' compensation insurance to cover medical expenses and related benefits.
Claims generally require the injury to occur in the course and scope of employment. As a rule of thumb, injuries that happen on the work premises, during scheduled work hours, and while the employee is performing job duties are likely to be covered, though exceptions apply.
For industry-specific guidance on coverage and class codes, see Orthotics & Prosthetics Workers' Compensation. Contact your workers' compensation adjuster for a full explanation of what will be accepted or denied in your state.
Workers' compensation is mandatory in many states. Without it you may face fines, suspension, or loss of your business license, and you could be personally liable for an injured worker's medical bills and lost wages.
Unique Liabilities
Orthotic and prosthetic device manufacturing involves specialized risks: products must fit and perform safely, and manufacturing processes can expose employees to hazards. If your product harms a client you could face product liability claims, and if an employee is injured you could be ordered to cover costs when proper coverage is not in place; see Workers' Compensation for Prosthetic Manufacturers for more on these exposures.
General Liability Insurance and Product Liability Insurance
Workers' compensation covers employees' workplace injuries, but it does not cover a client who is injured by a product or during a fitting. General liability can help with incidents where a client is hurt on your premises, and product liability helps cover legal costs and damages if a product causes harm.
If you are unsure which policies you need or how your current coverage applies, consider discussing your situation with an insurance professional; you can talk to an agent to review your options and limits.
Frequently Asked Questions
Who does workers' compensation cover?
Workers' compensation generally covers employees who are injured while performing job duties within the course and scope of employment.
Is workers' compensation required for prosthetic and orthotic manufacturers?
Many states require employers to carry workers' compensation; requirements vary by state and by the number of employees.
Does workers' compensation cover customer injuries from a product?
No, customer injuries from a product are typically addressed by general liability or product liability policies rather than workers' compensation.
What should I do after an employee is injured?
Report the injury promptly, provide or arrange for medical care, and file any required claims with your workers' compensation carrier according to state rules.