What is it?
Workers’ Compensation insurance covers medical expenses, lost wages, and rehabilitation for employees injured or ill due to work. It also provides death benefits to families and resources for medical professionals.
Who needs it?
Most states require employers to have Workers’ Compensation insurance, including some self-employed individuals. Coverage requirements vary by state, so consulting a local insurance agent is essential.
How does it work?
If an employee is injured or develops a work-related illness, the insurance covers treatment and recovery costs. This includes accidents, repetitive stress injuries, and work-related disabilities.
Who pays for it?
Employers must fully cover the cost—deductions from employee wages are not allowed. Failure to provide coverage can lead to fines and penalties.