Workers Compensation Definition

Workers Compensation is insurance coverage that provides wage replacement and medical benefits to employees who suffer work-related injuries or illnesses. This insurance is mandatory in most jurisdictions and serves to protect both employees and employers. It ensures that employees receive necessary medical care and compensation for lost wages due to workplace accidents or occupational diseases, regardless of fault.

Workers Compensation benefits typically include medical treatment, rehabilitation services, and temporary or permanent disability payments. Employers pay premiums for this insurance, and in return, they are protected from direct lawsuits by employees injured on the job. Workers’ Compensation laws vary by jurisdiction but generally aim to promote workplace safety, provide financial security for injured workers, and maintain a balance of responsibilities between employers and employees in case of workplace injuries or illnesses.