What Is Workers’ Compensation Insurance?

It is important to be prepared if/when an employee is injured on the job. A workers compensation insurance policy ensures that an injured workers medical and financial needs are met. Workers compensation insurance provides a way to transfer risk to an insurance provider and protect the business.

Workers compensation coverage is constant no matter where fault lies. As long as the injury occurs during the normal scope of job duties, workers compensation insurance benefits are applicable.

Workers compensation coverage can help protect both you and your employees after a work-related injury or illness. For the injured employee, a workers compensation policy can cover all expenses resulting from on-the-job injuries including, lost wages, lost benefits, medical care, rehabilitation services, legal representation and compliance services. For the employer, workers compensation provides a sole remedy, avoiding expensive civil litigation, plus peace of mind knowing your employees will get the help they need to recover and return to work.

Workers’ Comp Quick Facts

You can turn to your Workers’ Comp policy to help pay for employees’ work-related injury or illness expenses, including…

  • Medical bills.
  • Ongoing care (including medication and rehabilitation).
  • Missed wages (often partial) during recovery.
  • Funeral expenses for fatal incidents.
  • Death benefits to support the deceased’s family.

But it can’t pay for:

  • Injuries caused by intoxication or drugs.
  • Self-inflicted injuries.
  • Injuries from a fight the employee starts.
  • Injuries caused by horseplay or company policy violations.
  • Off-the-job injuries.
  • Injuries claimed after an employee is fired or laid off.
  • Independent contractor injuries.
  • Wages for a replacement worker.
  • OSHA fines.