What is workers’ compensation insurance

The Basics of Workers’ Comp

What is workers’ compensation insurance? Workers’ comp is state-mandated coverage of the costs associated with job-related illnesses and injuries. Most states require employers to carry some type of workers’ compensation policy. Compensation is usually made regardless of who is at fault for the injury, although there are some key exceptions.

Coverage

What is workers’ compensation insurance going to cover? Any injury suffered or illness contracted in the course of performing the tasks of the job can be covered by worker’s comp. The policy typically covers the majority of expenses associated with the injury:

  • Medical bills
  • Hospital stays
  • Physical therapy
  • Disability payments

Exclusions

Just because an injury technically occurs in the workplace does not automatically mean it is job-related. Workers’ compensation policies do not cover accidents that result from certain behaviors:

  • Drug or alcohol intoxication
  • Physical fights
  • Commission of a crime
  • Violation of company policies

Persons

What is workers’ compensation insurance going to cover for workers who are not technically employees? The workers’ compensation policy only covers those who are employed by the company. For example, if an independent contractor is injured on site, the insurance company will reject a workers’ comp claim made on his or her behalf.

Workers’ compensation insurance protects employees from job loss and medical expenses when they are injured on the job. It also protects employers from the legal costs of being sued for compensation. Workers’ comp benefits both employees and employers.