Who Pays For Workers’ Compensation?

March 12, 2020
Who Pays For Workers' Compensation?

If you’ve been recently injured due to a work-related matter then you may be entitled to workers’ compensation in Florida. Workers’ compensation is a form of insurance that provides wage replacement and medical benefits to employees injured on the job. But who actually pays for workers’ compensation? And where does the money come from?

It’s paid, one way or another, by the state or employers. It’s done either by direct payments from the company, payments to an insurance company, or through a state-run insurance program. Therefore, depending on the individual employer, funding is done by the employer itself, state government, an insurance company, or by a third party.


In most states, for an employer to self-insure, their business must be large enough to prove it has enough assets to cover the workers’ compensation liability. Some states will require self-insured businesses to submit to oversight by the state. This is to ensure that procedures are being followed properly and that workers are receiving the full amount of benefits they are owed.

In many cases, self-insured businesses will have a third-party administrator to settle workers’ comp claims for the employer. Third-party administrators handle and manage the claims as well as the paperwork. They receive the amount of benefits owed by the self-insured employer and then send these funds to the injured workers.

If you work under a self-insured employer and you haven’t received compensation benefits that you believe you’re entitled to, consider hiring an attorney. Our Pharmacy Network attorneys are dedicated to making sure you receive the workers’ compensation benefits you deserve and are only paid with a limited percentage of the settlement.

State-Run Workers’ Compensation Programs

Employers may decide to have a state-run program to handle the payments for workers’ compensation. Administered by various departments, these programs grant insurance funds to employers. State-run programs are usually utilized the most by smaller businesses or employers with low rates of work-related injuries. Employers will pay these programs and when a claim occurs the government handles the payments as it is taken care of by the department overseeing the program.

Private Insurance Companies

The third option that employers can utilize is the service of private insurance companies. These companies provide funding for workers’ compensation to employers of any size. Employers that use third-party administrators have complaints concerning payment directed to these companies. Some examples of private insurance companies are Liberty Mutual and Chartis. Not all states permit this practice, however.

Having Trouble Receiving Workers’ Compensation? Contact Our Pharmacy Network Today

If you aren’t receiving workers’ comp that you feel you’re entitled to then contact the expert team of Our Pharmacy Network today. Not only do we offer our attorneys to assist you but we can also offer the aid of our pharmaceutical and physician services. If interested, call us at (844) 238-9313 or visit our contact page.

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