What is Workers' Compensation?

Workers’ compensation requires employers to purchase insurance that covers reasonable surgical and medical expenses, rehabilitation services, wage loss, and death benefits for employees whose injury was directly caused by their employment or whose illness was caused or aggravated by their workplace. With a workers' compensation policy in place, the employee can generally receive workers’ compensation benefits no matter who was at fault. The employee, then, usually does not have the right to sue the employer for injuries for which they can receive benefits.

Who is Covered by a Workers' Compensation Policy?

Any employer of one or more employees must provide workers’ compensation insurance through a private company or by the State Workers’ Insurance Fund. It is required by state law for all employers including unincorporated businesses and non-profit corporations. Virtually every employee is covered. This includes part-time and seasonal employees. However, volunteers, agricultural laborers, and casual employees may not be totally covered. Some employees of certain businesses may be covered under more specific compensation laws such as the Longshore and Harbor Workers’ Compensation Program or the Black Lung Benefits Program.

Category: Business Insurance

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