Worker’s compensation is a form of insurance providing wage replacement and medical benefits to employees injured during the course of employment. In exchange, an employer receives coverage for all work-related accidents, as well as, a mandatory relinquishment of the employee’s right to sue for perceived negligence. Worker’s compensation is essentially a no-fault insurance program that protects both parties.
Although worker’s compensation is required by law in almost every state, each state will differ significantly in regards to stipulations and requirements. While plans may vary among jurisdictions, provision can be made for weekly payments in place of wages, compensation for economic loss (past and future), reimbursement or payment of medical expenses and benefits payable to the dependents of employees killed during employment.
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