Workers' Compensation Insurance
Definition - What does Workers' Compensation Insurance mean?
Workers' compensation insurance is insurance coverage for employees who get injured while working or develop a job-related illness. The employee can seek payment of benefits for wage replacement, medical treatment, and disability or vocational rehabilitation arising from accidents and illnesses that are job-induced. For employers, the coverage means protection against liabilities caused by these work-connected situations.
Insuranceopedia explains Workers' Compensation Insurance
One of the major concerns of employers in their management of their business is maintaining safety on business premises and keeping employees safe at work. But accidents may occur and the employer cannot prevent them all. One way to address this issue as it arises is by way of a workers' compensation insurance, a state-approved and mandated program that provides benefits to an employee who is injured or gets sick due to the work he performs.
For employers, this coverage means protection against losses induced by work-connected accidents and illness. For employees, the coverage is an assurance that in the event of unavoidable accidents while performing official duties, they will be compensated for lost wages as well as other benefits.