Alabama workers’ comp 101

Like many states, it’s required by law in Alabama for employers to have workers’ compensation coverage. This insurance protects your business by providing you with limited civil liability in the case of an employee’s on-the-job injury or occupational disease. This coverage can help you avoid double compensation, penalties and fines.

Read on to learn what Alabama workers’ compensation is and how it can protect you and your small business in the event of a work-related accident.

What do Alabama small business owners need to know about workers’ compensation?

Alabama’s Department of Labor aims to protect the state’s employees and employers by providing compensation for job-related injuries and diseases through the Alabama Workers’ Compensation law.

The law requires that all job-related injuries must be reported to the insurance carrier. The insurance carrier is responsible for filing the Employer’s First Report of Injury to the Alabama workers’ compensation division. The division must keep a record of all job-related injuries that have been reported until final compensation is issued.

What benefits are covered by workers’ compensation coverage?

Employee benefits fall under four categories:

Medical benefits

- Doctor visits
- Emergency room care
- Surgery
- Medications
- Physical therapy
- Medical equipment, such as crutches and wheelchairs
- Chronic pain management

Disability benefits

These benefits can include wage coverage for the time it takes an injured employee to recover and return to work. The amount of wage replacement depends on:

- The level of disability
- The worker’s earning capacity
- Alabama state regulations

Disability benefits could be for life if the employee’s disability permanently prevents them from returning to work.

Rehabilitation benefits

- Job training
- Skills assessment and testing
- Job development and placement
- Resume assistance
- Tuition reimbursement
- Books and additional expenses

Death benefits

If an employee dies in a work-related incident, their dependents will be provided workers’ comp benefits. Dependents can include a spouse, minor children, or elderly parents living in the same household.

Benefits also include burial expenses and funeral costs in most states.

Additionally, an employee can also receive death benefits years after an injury. For example, if a worker is exposed to toxic chemicals on the job and develops cancer years later as a result, they can receive benefits.

10 essential facts about workers’ comp insurance in Alabama

Curious about Alabama workers’ comp rates?

Remember, every situation is different. Alabama workers’ compensation laws are subject to change, so be sure to do your research and speak with a trusted advisor.

Please note that this content is intended for educational purposes only. As laws change regularly, refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about the basics of workers’ comp or check your current rate in 3 minutes.

Workers' compensation in Alabama - Pie Insurance