Workers Compensation Insurance

Workers compensation insurance is a policy that provides wage replacement and medical benefits to employees who are injured while performing their job duties. In exchange for these benefits, employees give up their right to sue their employer for negligence related to the injury.

Additional Information about Workers’ Compensation Insurance

Although coverage details may vary by jurisdiction, workers’ compensation typically includes:

Wage Replacement: Weekly payments that serve as a substitute for lost wages, functioning similarly to disability insurance.
Economic Loss Compensation: Reimbursement for both past and future loss of earnings.
Medical Benefits: Coverage for medical expenses related to the injury, similar to health insurance.
Survivor Benefits: Payments to the dependents of workers who are killed on the job, functioning similarly to life insurance.

However, workers’ compensation plans typically do not provide compensation for pain and suffering, nor do they allow for punitive damages due to employer negligence. Negligence is generally not a factor in workers’ compensation claims.