Workers’ compensation is a state-mandated insurance program that provides benefits to employees who get injured or sick from their job. It covers medical care and a portion of lost wages, and in exchange, employees typically cannot sue their employer for the injury. This no-fault system protects both the employee’s well-being and the business from costly litigation.
- What It Is: Insurance that provides medical benefits and wage replacement to employees injured on the job.
- What It Covers:
- Medical Expenses: Doctor visits, surgery, and rehabilitation.
- Lost Wages: A portion of the employee’s regular pay while they are unable to work.
- Employer’s Liability: Protects the business from lawsuits related to the workplace injury.
- Who It’s For: Businesses with employees. It is mandatory in almost every state.
- Key Considerations: Premiums are based on payroll and the risk level of the jobs.