What Is Workers' Compensation?

Simply put, workers' compensation can compensate employees if an accidental injury occurs at work. For example, if an employee slips and falls while working, workers' compensation insurance could pay for their injuries and lost wages. In most states, workers' compensation is required by law if you have more than one employee.

The purpose of workers' compensation is twofold. Firstly, it protects the employee if they cannot work due to a workplace injury. Secondly, it protects the business from potential lawsuits brought on by the injured employee. Even if it were not required in most states, it would still be an essential piece of insurance to carry as a business owner.

Coverage Breakdown

Workers' compensation pays for lost wages and any medical treatment for an employee due to an accidental injury on the job. The amount of money an employee is entitled to largely depends on the extent of their injury and how it has affected them. There are four main categories of injuries under the workers’ compensation law:

• Temporary Total Disability
• Temporary Partial Disability
• Permanent Total Disability
• Permanent Partial Disability