Worker’s Compensation Insurance is insurance that covers employees for injuries received on-the-job or in the course of employment. Unlike many other types of business insurance, Worker’s Compensation Insurance coverage is generally a required type of insurance coverage. While there are some exceptions, most states require most businesses with employees to buy insurance policies to cover their obligations to pay worker’s compensation in the event of an employee being injured or becoming ill on the job. The coverage included in a Worker’s Compensation policy generally covers medical expenses, lost wages, vocational rehabilitation, and, in the event that an employee dies as a result of the injury or illness, survivor benefits for their insurance designee.
Workers Compensation Insurance
A business that fails to carry Worker’s Compensation Insurance faces dual exposure: its assets are at risk in the event that an injured employee or a survivor brings a lawsuit against it for a workplace injury and, in most states, it can face fines and other penalties.
Some states and territories do not permit businesses to get private coverage for Worker’s Compensation Insurance, but instead require employers to get their coverage through state operated funds or exchanges. These states and territories are North Dakota, Ohio, Puerto Rico, the U.S. Virgin Islands, Washington, West Virginia, and Wyoming.