Unemployment insurance and workers’ compensation have an employee focus but are 2 very different policies from each other. Both are useful to workers and their families.
Unemployment vs Workers’ Compensation Insurance
The first difference is that workers’ compensation plans are policies that are sold by insurers. Unemployment insurance is a combination of government programs developed with a social approach and insurers, in such a way that compensation is improved. This allows the payment received by the unemployed worker to reach around 50% of what his salary was.
Unemployment insurance applies exclusively when a worker loses his job for reasons beyond his control. Compensation insurance policies operate when there is an accident or illness caused by activities at work. This means that unemployment works when the worker does not have a job. Compensation insurance works exclusively at work, either due to accident or illness.
Workers’ compensation insurance must be requested by companies when they have workers. This insurance must be purchased by all employers. Unemployment insurance from private insurers must be contracted before the unemployment situation. These are paid by the worker himself.
Workers’ compensation insurance premiums must be paid by the employer or business. Unemployment insurance from private insurers must be contracted before the unemployment situation. These will be paid by the worker himself.
Most insurers that sell them have a period without coverage, usually during the first 6 months after the policy is issued, so that it is not contracted when there is knowledge of a dismissal some time in advance. The procedure with the Government only begins after the unemployment situation is presented.
Who Can Enjoy Unemployment and Compensation Insurance
Unemployment insurance is available according to the rules of each state. Compensation fees also vary but are mandatory for any company in most of the country. Unemployment insurance benefits are only temporary. Some workers’ compensation insurance benefits may be lifelong for a total or partial disability that has permanent effects.