Workers’ Compensation pays very broad and comprehensive benefits that are mandated under state law. They’re often payable for many years after the date of the injury. This is why the premiums can be so expensive.
Benefits are payable to both your employees and the employees of your uninsured subs if they’re injured on the job or have an occupational disease. Its a no fault system. Payment is made even if you, as the builder, are not at fault in causing the injury.
The policy pays all medical bills, both past and future. It pays for lost wages if the worker is out of work recovering, usually 66 2/3% of the employees average weekly wage subject to certain limitations (for example, in South Carolina, the current maximum payout is $681 a week for up to 500 weeks). It also pays a lump sum benefit for certain partial and total disabilities as determined by a Workers Compensation commissioner. In addition, lump sum benefits are payable for disfigurements and there is a death benefit, which varies according to wages but is currently capped out at around $205,000 in South Carolina.