__medium.jpg)
| NYC Business Group
How Does Workers’ Compensation and Group Health Insurance Differ?
When it comes to protecting employees, it is crucial for business owners to know the difference between workers' compensation and Group health insurance. Although the two forms of coverage have some similarities, there are key differences, especially in how they work and are regulated. Let us look at their differences and how they can protect your workers and your business:
What is Workers' Compensation?
Worker's compensation insurance protects an employee if hurt or injured on the job. The insurance covers lost wages, medical expenses, and temporary or permanent disability. Medical expenses covered include hospital stays, doctor visits, and physical therapy. 
Workers' compensation covers all funeral expenses if an employee dies from a work-related illness or injury. An employee might benefit from workers' compensation if they:
- Developed back injury from repetitive movements
- Carpel tunnel syndrome
- Develop lung damage from breathing toxic chemical substances
- Sustain an injury from work
- Sustain an injury from a car accident while working
Worker's compensation insurance is a requirement in every state in the US. The coverage also provides peace of mind to business owners because:
- It protects them against possible lawsuits from the employees
- It covers medical expenses a business owner would incur in case of an accident at the workplace
Employees need to file a compensation claim to receive the benefits. Give us a call, to find out more about Workers' Compensation Coverages.
What is Group Health Insurance?
Health insurance covers all the medical expenses resulting from an injury or illness. Therefore, health insurance does not cover lost wages due to an injury or illness sustained at work. Business owners and employees should note that most health insurance policies do not cover injuries covered by the workers' compensation insurance. Employers are advised to research and choose a reliable healthcare plan that suits the needs of the employees. The employees can then decide whether to agree to the healthcare plan or not. At NYC Business Group, we can get you a reasonable quote for Group Health, Give us a Call!
Employers can provide health insurance as a benefits package to motivate workers and promote work productivity. If an employer decides to provide health insurance, he can either pay the entire monthly premium or share the cost with the employees. However, the employees can choose to purchase their own health insurance.
.jpg)
What are the Key Differences Between Workers' Comp and Health Insurance?
Regulatory Requirements
Most states in the US require business owners/employees to purchase workers' compensation insurance. However, businesses with less than 50 employees are not legally obligated to provide health insurance.
Coverage
Workers' compensation covers medical expenses and lost wages if an employee is injured at work. On the other hand, health insurance only covers medical costs unrelated to work injury or illness.
Who Pays?
Employers are legally required to pay for the workers' compensation insurance coverage. Regarding health insurance, employers usually pay a fraction of the monthly premiums.
Employers should understand the differences between health insurance and workers' compensation. With the current market competition, employers who do not provide health insurance find it hard to attract qualified and skilled employees. However, if you decide to offer health insurance, consider potential costs and the amount of money you are willing to pay each month. If you have any questions, research well and seek help from an experienced insurance professional, NYC Business Group is an Agency who provides both, can can help get you the right rate for your business!