Workers' Compensation

Workers’ compensation insurance provides benefits to employees who experience work-related injuries or illnesses, covering medical expenses and a portion of lost wages. It operates on the principle of liability without fault, meaning employees receive benefits regardless of who caused the injury, in exchange for giving up the right to sue their employer in most cases.
Programs are administered at the state level, and requirements, benefit levels, and covered conditions vary by jurisdiction. Coverage typically includes medical care, rehabilitation services, disability benefits for temporary or permanent impairments, and death benefits for surviving dependents.

Disability benefits are often classified as temporary total, temporary partial, permanent total, or permanent partial, depending on the extent and duration of the impairment. Employers are generally required by law to carry workers’ compensation insurance or to qualify as self-insured if they meet specific financial and regulatory requirements. Premiums are based on factors such as industry risk classification, payroll size, and an employer’s claims history.
Most states also require employers to post notices informing employees of their rights and how to file a claim.

Workers’ compensation programs are intended to protect both employees, by providing prompt financial and medical support, and employers, by limiting costly litigation. This system helps ensure injured employees receive needed care while supporting workplace safety and injury prevention efforts.