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Workers’ compensation (WC) insurance provides financial support and medical and disability coverage to employees injured in the course of employment in return for those injured workers relinquishing the right to sue their employers.
Although workers can only seek workers’ compensation for work-related injuries and illnesses from their employers, they can still sue the manufacturers of products or equipment which caused the injury.
All WC laws follow the same basic premise, but there is a lot of variety in the details. Benefits always include medical coverage and varying amounts for loss of income benefits.
Most employers are required by law to provide for the payment of workers’ compensation claims, at no expense to their employees. Most private employers are covered by state regulations. Employers with as few as one employee are typically covered, with certain exemptions for sole proprietors, agricultural employers, and so on. The exemptions vary by state.
Regulated by each individual state’s statutes. Several federal acts provide government workers with WC coverage, subject to its own requirements and statutory parameters for federal employees.
Most employers are required by law to provide for the payment of workers’ compensation claims, at no expense to their employees. Most private employers are covered by state regulations. Employers may obtain WC protection through commercial insurance, individual or group self-insurance, state pools, or direct state funding depending on the regulations in their state.
Employers may obtain WC protection through commercial insurance, individual or group self-insurance, state pools, or direct state funding depending on the regulations in their state.
Workers’ Compensation is based on a balance between the needs of both employers and employees. It is meant to be a no-fault, non-adversarial system. Labor gives up the right to sue and management gives up the right to defend against claims.
Employees are covered by workers’ compensation whether or not they were following company policy at the time they were injured on the job. At the same time, even if an injury or illness is due to employer negligence the employer cannot be sued. Some states do reduce compensation if an employee is on drugs or alcohol at the time of an accident.