Question

How state's work's compensation plan funded? How does this fit as an enterprise fund?

Answer 1

ANSWER: The employers in most states may choose to obtain state's work's compensation plan funded through the state-run program or insurance fund. The state’s department of commerce, labor, or industrial relations specifically administers these programs. Most of the employers that choose the state systems are usually small employers or employers with few workplace injuries in an industry; thus fit as an enterprise fund. Employers pay premiums, and when the claim arises, the insurance company makes a verification on what benefits are owed, and then make payments to the injured party.