Workers Compensation insurance
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What is Workers Comp Insurance?

Workers Compensation insurance is a type of insurance held by employers that pay benefits to employees for injuries incurred on the job. It typically covers medical and rehabilitation costs as well as lost wages. Most states in the United States effectively require employers to handle their statutory obligations to employees by purchasing some type of insurance.


Workers comp requirements began in the early 20th century in the U.S. Before 1911, workers had to take legal actions against employers for injuries or illness due to their jobs. This exposed employers to potentially devastating financial penalties. It also made it difficult for workers to obtain compensation for their injuries. Beginning in 1911, a compromise was struck. Many states implemented a “no-fault” system. It allowed workers to receive fair and prompt treatment and financial compensation while at the same time imposing limits on the obligations on employers for workplace exposure. Employers can meet their obligations by purchasing workers compensation insurance.


Most workers comp laws provide comprehensive benefits to workers. These benefits may include lost wages, medical expenses, vocational rehabilitation, and death benefits. Failure to carry insurance can leave a business vitally exposed. In the event of an accident, the company could be required to pay these expenses out of pocket. Workers compensation insurance is a necessary expense of owning a business with employees. It can protect a company from expensive payouts. It also provides necessary protection to employees.

Henry Henrynms (Author)