Any employer or employee should be aware of the ins-and-outs of CT workers comp, plain and simple. By definition, workers compensation is a form of insurance that provides wage replacement and medical benefits for employees who are injured in the course of employment, in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence. Companies that are involved in construction and heavy labor are especially susceptible to workers comp claims, but those white-collar firms are also just as vulnerable.
Since this subject can include a wide variety of employers and employees, we must first take a look at the law itself. The CT workers comp law states:
When any principal employer procures any work to be done wholly or in part for him by a contractor, or through him by a subcontractor, and the work so procured to be done is a part or process in the trade or business of such principal employer, and is performed in, on or about premises under his control, such principal employer shall be liable to pay all compensation under this chapter to the same extent as if the work were done without the intervention of such contractor or subcontractor.
With regards to employees that are unsure of how this policy works, below is the most basic definition:
Workers’ compensation laws provide money and medical benefits to an employee who has an injury as a result of an accident, injury or occupational disease on-the-job. Workers’ compensation is designed to protect workers and their dependents against the hardships from injury or death arising out of the work environment. It is intended to benefit the employee and employer alike. The employee receives money (usually on a weekly or biweekly basis) and medical benefits in exchange for forfeiting the common law right to sue the employer. The employer benefits by receiving immunity from court actions against them by the employee in exchange for accepting liability that is limited and determined. The question of negligence or fault is usually not at issue.
If an employer fails to obtain the proper CT workers comp, the company can face strict penalties by the state:
If an employer fails to obtain required coverage and an accident occurs, the injured employee either file a lawsuit against the employer in civil court or file a claim against the state workers’ compensation system. Monetary exposure to a suit in civil court can be extremely significant to the employer. Stop-work orders and fines can be levied in addition to injunction and assessments against the employer. Employers who try and circumvent the law by going “naked” may also expose their personal assets and other business assets as well.
Hopefully this brief legal learning session gave you a better understanding of the basics of CT workers comp. If you have any further questions or are looking to invest in a new policy, give Paradiso Insurance a call today or stop by our office at 8 East Main Street, downtown Stafford Springs! 860.684.5270