Workers' Compensation

Definition - What does Workers' Compensation mean?

Workers' compensation is a state-provided insurance designed to cover work-related incidents that occur on the job. This helps a company's insurance company quickly assess the cause of an incident without holding someone responsible for the incident. Due to the expansiveness of this coverage, employees are not allowed to sue an employer who provides them with workers' compensation.

Insuranceopedia explains Workers' Compensation

Workers' compensation is a well-developed program that the government's Department of Labor has put forth to allow states the ability to provide their state workers or those related to an incident (third parties) with compensation for a work-related accident. This will require employers to provide medical insurance, expenses, and loss of pay to those who are injured while working. Unlike other insurance, workers' compensation does not factor in the fault of the injury in order to get the worker back to good health and back to work. As a result of the extent of coverage, by accepting workers’ compensation employees are giving up the right to sue the employer if they feel they didn’t not receive proper coverage.


This definition was written in the context of Accident Coverage

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