What is Workers' Compensation Insurance?

Workers' compensation insurance provides wage replacement and medical benefits to employees who are injured or become ill on the job. It covers costs like medical bills and lost wages that result from work-related injuries or illnesses. For employers, workers' compensation insurance protects against lawsuits from employees with workplace injuries or illnesses.

What Benefits Does Workers' Compensation Provide?

Workers' compensation provides several key benefits to injured or ill employees:

Medical care: Pays for medical treatment, services, and supplies for a work-related injury or illness. This includes doctor visits, hospital stays, surgery, prescription drugs, and more.

Lost wages: Provides a portion of the employee's wages if they are unable to work due to a work-related injury or illness. This is meant to cover living expenses while the employee recovers.

Disability: If an employee is permanently disabled due to a work-related injury or illness, workers' compensation may provide long-term or lifetime disability payments.

Vocational rehabilitation: Workers' compensation may cover training or education for employees who can no longer perform the duties of their job due to an injury or illness. This helps them find new work or a new career path.

What Types of Injuries Are Covered by Workers' Compensation?

Workers' compensation insurance covers injuries and illnesses that arise out of and in the course of employment. This includes things like:

• Physical injuries from accidents, falls, equipment, materials, etc.
• Repetitive stress injuries from continual use of equipment, tools or motions
• Respiratory or lung diseases from exposure to toxic substances
• Hearing loss or other injuries from exposure to loud noises
• Mental illnesses like depression or anxiety that are caused or aggravated by work conditions

Is Workers' Compensation Mandatory in All States?

Workers' compensation insurance is mandatory for most employers in the United States. Currently, all 50 states and federal employees require employers to provide workers' compensation coverage. Specific rules and requirements vary significantly between states though. Employers should check with their state's requirements to ensure they are meeting all workers' compensation insurance mandates.