Standard Workers’ Compensation Insurance

Updated: 09 June 2023

What Does Standard Workers’ Compensation Insurance Mean?

Standard workers’ compensation insurance is a standard type of coverage required in every state for businesses with employees. This insurance covers the costs for medical expenses, lost wages, and rehabilitation for workers who are injured or who become ill while on the job. Every state has its own rules and regulations for standard workers’ compensation insurance.

Insuranceopedia Explains Standard Workers’ Compensation Insurance

Standard workers’ compensation insurance policies first became required by law in 1911. Prior to then, employees who became ill or injured on the job had to file lawsuits against their employers to receive compensation for the expenses associated with their injuries. Standard workers’ compensation insurance prevents the need for workers to sue their employers. Workers simply receive benefits if they qualify. Moreover, it also helps employers by limiting their liability and preventing legal fees that they would otherwise have to pay if their employees were suing them for workers’ compensation benefits.

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