{"id":5097,"date":"2016-04-04T10:47:54","date_gmt":"2016-04-04T15:47:54","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/smallbusiness\/liability-and-insurance\/handling-a-claim-employer-and-employee-responsibilities.html"},"modified":"2026-09-22T08:42:09","modified_gmt":"2026-09-22T13:42:09","slug":"handling-a-claim-employer-and-employee-responsibilities","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/handling-a-claim-employer-and-employee-responsibilities.html","title":{"rendered":"How To Handle a Workers’ Comp Claim: A Guide for Employers"},"content":{"rendered":"\n
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How To Handle a Workers' Comp Claim: A Guide for Employers<\/h1>\n\n
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\n By Balrina Ahluwalia, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Workers’ compensation is a state-mandated insurance system that provides medical care<\/span>, wage replacement, and disability benefits<\/span> to employees who suffer work-related injuries<\/span> or illnesses. Under this mandatory framework, employers are legally required to maintain coverage, deliver prompt medical attention, and report incidents without retaliation. In exchange for these guaranteed benefits, the system generally grants employers immunity from direct personal injury lawsuits by injured workers.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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A work-related injury<\/span> can be scary for everyone involved. It affects not only the injured employee, but also operations and other employees. As you address the ripple effects on your workforce and organization, you\u2019ll also need to satisfy your immediate legal obligations.<\/p>\n

Each state has its own workers\u2019 compensation rules<\/a> for employers, but the core responsibilities are generally the same nationwide. Employers must ensure their employees can obtain prompt medical care<\/span>, report incidents properly, cooperate with insurers, and support the injured employee throughout the process. Understanding exactly what this means is critical to ensuring compliance and promoting a safe, supportive workplace.<\/p>\n

This guide breaks down what employers must do when a workplace injury<\/span> occurs and how workers\u2019 compensation claims unfold<\/a>. We review tips for managing these claims effectively and answer commonly asked questions. We\u2019ll also cover steps you can take in order to protect your organization.<\/p>\n

If you\u2019re dealing with an injured worker, it usually makes sense to touch base with a lawyer. A workers\u2019 compensation attorney<\/span> licensed in your state <\/a>can put things in perspective, identify questionable claims, and help you meet your legal obligations.<\/p>\n

In the meantime, let\u2019s start with the basic insurance requirements.<\/p>\n

Mandatory Insurance Coverage<\/h2>\n

Nearly every state requires most employers to carry workers\u2019 compensation insurance<\/span><\/a>. Texas and South Dakota<\/a> are the only exceptions. Some states exempt very small agricultural and domestic employers.<\/p>\n

Barring these exceptions, employers must maintain active workers\u2019 compensation coverage, post required notices<\/a>, and renew policies on time. Failure to do so can result in steep fines, personal liability for injury costs, and even criminal penalties<\/a> in some states.<\/p>\n

Compliance usually protects employers from most lawsuits related to workplace injuries<\/span>. This insurance covers workers classified as employees under state law. The Federal Employers\u2019 Liability Act (FELA)<\/a>, not state\u00a0workers\u2019 compensation laws<\/span>, governs railroad employees’ injuries.<\/p>\n

Workers\u2019 Compensation Benefits<\/h2>\n

Workers\u2019 compensation pays for medical care<\/span> for employees injured on the job. Employees who can\u2019t work due to a job\u2011related injury\/illness may also qualify for lost wages<\/span> and disability benefits<\/span><\/a>. These are wage replacement benefits. They\u2019re designed to partially compensate employees for income they can\u2019t earn while recovering from a work\u2011related injury.<\/p>\n

Depending on the severity of the injury, these benefits could include:<\/p>\n