4 Types of Legal Fees That Are Covered Under Workers Comp Insurance

Workers’ compensation insurance can be complex, especially regarding legal fees. Going through this critical process requires understanding regulations and requirements for employers and employees, as well as how to apply them correctly.

Receiving the necessary coverage for Cerity can provide some financial relief by covering several expenses associated with legal fees. Knowing these details is critical to successfully delivering the correct protections against costs caused by accidents or medical issues arising in the workplace.

This article will explore four types of legal costs typically covered by workers’ comp insurance: court costs, legal fees, attorney fees, and settlement payments.

Understanding Workers’ Comp Insurance

Before thoroughly exploring the workers’ compensation insurance concept, it’s vital to understand it. This form of insurance acts as a safety net, extending benefits to employees who experience injuries or illnesses directly linked to their job responsibilities.

These benefits include medical expenses, wage replacement, and rehabilitation costs. Moreover, workers’ comp insurance also covers specific legal fees associated with these claims.

By offering financial support, medical coverage, and rehabilitation assistance, workers’ comp insurance ensures that employees receive the necessary care and compensation they deserve during their recovery.

1. Court Costs

When a workers’ compensation claim escalates to litigation, various court-related costs may be incurred. These costs can include filing fees, service fees, witness fees, and expenses to obtain medical records. Filing fees cover the administrative expenses of submitting the claim to the court. Service fees encompass the costs of serving legal documents to relevant parties involved in the case.

Witness fees are compensation to individuals summoned to testify in court. In addition, expenses to obtain medical records may arise to gather necessary evidence for the case. These costs can add up and should be considered when evaluating the overall financial impact of a workers’ compensation claim that proceeds to litigation.

Cerity workers’ comp insurance policy typically covers these costs, offering significant financial relief for your business.

2. Legal Fees

Legal fees in workers’ compensation cases can encompass consultation fees, research costs, and charges for legal advice. These fees are generally paid to the lawyers representing your business in court. Many states have regulations to cap the amount attorneys can charge for their services. Cerity workers’ comp insurance policy usually covers these fees, reducing the financial burden on your business.

3. Attorney Fees

Attorney fees represent another significant expense in workers’ compensation cases. These fees are paid to the attorney representing the injured employee. States often regulate these fees to ensure fairness. For instance, in some states, the maximum fee allowed by law for legal services is 20% of the first $130,000 of compensation awarded to the employee. Most workers’ comp insurance policies cover these attorney fees, aiding businesses in managing their financial liabilities.

4. Settlement Payments

A workers’ compensation claim may sometimes be resolved through a settlement. This means the injured employee agrees to accept a lump sum or structured payments instead of pursuing further legal action.

Cerity workers’ comp insurance policy typically covers these settlement payments. This coverage can significantly alleviate the financial burden on your business.