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What is Workers' Compensation Insurance



According to state law, most employers must have workers' compensation insurance, which provides employees with workers' comp benefits in the event of an accident. Whether you are an employee filing a work-accident claim or an employer seeking workers' comp insurance, you may want to seek out the assistance of workers' compensation lawyers in the event of a workplace accident claim.

Workers' Compensation Insurance Basics

You may be asking yourself, "What is workers' compensation insurance, and what purpose does it serve?"

Workers' compensation insurance exists for two reasons. First, it pays workers who are injured on the job. It can cover both a worker's medical costs, as well as lost wages. Oftentimes when an employee is disabled due to a work accident, he or she is unable to work, so workers' compensation provides some financial support.

Workers' compensation insurance also serves to protect the employer from litigation. If an accident occurs at work, the workers' compensation insurance can help shield the employer from being sued by the employee. Instead, the insurance will pay the worker for his or her injuries.

Workers' comp insurance premiums are paid by the employer, not the employee.

What Does Workers' Comp Insurance Cover?

A workers' compensation insurance plan's coverage may vary from plan to plan and state to state. However, there are a number of things the policy will probably cover. These include:

  • Medical costs
  • Lost wages and disability income
  • Money to cover rehabilitation and physical therapy
  • Compensation for the death of an employee

If you have questions about what your employer's plan covers, you should contact workers' compensation lawyers who are knowledgeable about the various types of policies offered in your state.