Workers’ Compensation insurance is a mandatory type of insurance carried by many businesses. Workers’ compensation is a “no fault” insurance program that provides medical treatment, wage replacement, and permanent disability compensation to employees who suffer job-related injuries or illnesses.
Who Needs Workers’ Comp Insurance?
Workers’ Comp insurance is required by law in almost every state. Workers’ comp laws are designed to ensure payment by employers for some part of the cost of injuries, or in some cases, of occupational diseases, received by employees in the course of their work.
Workers’ Comp Insurance Basics
Workers’ Comp insurance typically only covers injuries or illnesses when they occur as a result of duties performed on the job or while at work. Examples of injuries that may be covered by Workers’ Comp insurance include injuries caused by lifting heavy equipment, slipping on a wet or oily surface, or sustaining injury due to fires or explosions.