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What Is Workers Compensation?

Before workers compensation laws were created, injured on-the-job employees often needed to sue their employers in order to get compensation for their injuries.

This was troublesome for both employees and employers.

Employers in particular were often at risk of going bankrupt because of the employee lawsuits. At the same time, the employees found themselves entangled in a long and drawn out legal process.

Federal and state workers compensation laws require that employers carry workers compensation insurance. When an employee becomes ill or injured, or even dies, due to job circumstances, the insurance will pay benefits to the employee.

Workers compensation benefits paid include medical benefits, wage-loss benefits, rehabilitation therapy, and benefits to dependents.

The goal of workers compensation laws is to get injured workers back to work without putting the employer at risk of bankruptcy as a result of litigation.

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