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The Essential Guide to Workers' Compensation -
Do you understand WC? (con't)

* Private Insurance: Most states allow firms to purchase policies from private carriers. In some states, the private carriers also compete with state-run funds.

* Assigned Pool of Coverage: In states that do not supply state-run funds, some businesses cannot qualify for private insurance. This might happen to a firm with a long history of claims or poor safety records. Many states operate insurance pools to assist these firms in covering their workers.

How State Laws Vary


States vary not only in the types of policies they allow but also in what those policies must cover. A few examples of states' policies differing include:

* How much coverage an organization must purchase for its workers
* Whether part-time workers are covered
* Whether non-employees, such as contractors, domestic workers, farm workers, volunteers and other groups, qualify for coverage
* How much of a worker's wages the company must pay if the employee is too injured to work
* How long the company is liable and must cover the injured employee
* Whether the company must also purchase liability insurance, which helps cover costs of any lawsuits brought against the company by injured workers or their families

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