Workers’ Compensation

Updated: 27 December 2024

What Does Workers’ Compensation Mean?

Workers’ compensation is a state-mandated insurance program that provides coverage for work-related injuries or illnesses that occur on the job. It enables a company’s insurance provider to assess the cause of an incident promptly, without the need to assign fault. Because of the comprehensive nature of this coverage, employees are generally prohibited from suing their employer for workplace injuries if they are covered by workers’ compensation.

Insuranceopedia Explains Workers’ Compensation

Workers’ compensation is a comprehensive program established by the U.S. Department of Labor that allows states to provide compensation to workers or third parties affected by work-related accidents. Employers are required to cover medical expenses, treatment costs, and lost wages for employees injured on the job. Unlike other forms of insurance, workers’ compensation does not consider the fault of the injury; its primary goal is to help the worker recover and return to work. As a result of this extensive coverage, employees who accept workers’ compensation forgo the right to sue their employer if they believe they did not receive adequate coverage.

Synonyms


Workers Compensation

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