A company generally has to prove that it has the funds to pay workers compensation coverage to be allowed to self-insure.
Companies in Missouri with five or more employees are generally required by law to carry insurance for workers’ compensation liability. Most employers purchase workers comp insurance through a third party and pay premiums to ensure that if an employee gets injured on the job, the insurers will cover the cost of medical bills and lost wages. Some businesses, however, choose to self-insurer.
Here’s what that means and how it can affect your workers’ compensation claim.
Self-Insured Employers
As the name suggests, a self-insured employer is one that acts as its own insurer. In other words, if an employee gets sick or injured on the job, the company will pay the medical expenses and lost wages out of its own pocket.
A company has to prove that it has the funds to pay workers compensation coverage to be allowed to self-insure. Most often, large corporations with significant profits choose this option as it gives them more control over the compensation process and their cash flow.
A self-insured company can decide on its own which claims to approve and which to deny. It’s a great way for businesses to keep their costs low if what they pay in workers’ compensation in a year is lower than the cost of insurance premiums.
However, that also means that employers may be more aggressive when processing workers’ compensation claims to keep their costs under control.
What Does This Mean for You?
If you get injured or sick because of your job, then your employer and not an insurance company will be responsible for paying your medical bills and lost wages. They will also be the ones deciding if you qualify for workers’ compensation or not. In some cases, the company may hire a third-party to handle the administrative tasks, but in the end, they will be the ones paying the bills.
Because they have to pay the costs of compensation out of their own pocket, your employer will look very carefully for any faults in your workers’ compensation claim. If they think there is any reason for it to deny it, they might reject your claim to keep their costs down.
That’s why it’s important to speak with an experienced St. Louis workers compensation lawyer when filing your claim. They can ensure that you avoid any crucial mistakes that might get your claim denied. A lawyer can also fight back if your employer is trying to foot the bill for your work injuries.
Injured at Work? Speak With an Attorney!
It’s your right to receive compensation for your work injury. Don’t let your employer tell you otherwise. Get in touch with a St. Louis workers compensation attorney as soon as possible to ensure your legal right to compensation is protected.