What does Workers Compensation mean?
Workers' compensation is employer insurance which covers the cost of work place injuries. It is a no-fault insurance plan which means the injured party does not have to prove their employer was negligent (unlike other personal injury claims), only that their injuries occurred while performing their normal job duties.
Workers' compensation provides partial and short-term benefits, wage compensation, medical care benefits, death benefits and burial benefits. Workers' compensation death benefits may also be provided to certain surviving beneficiaries if a worker dies.
Workers' compensation was created to allow injured workers to collect immediate compensation for work injuries without filing an injury claim, suing their employer and spending months in court trying to get wage replacement benefits. Workers' compensation also allows the employer to avoid a costly and difficult battle in court, although they may end up paying some claims they could have avoided.
Workers' compensation may eliminate most workers' right to sue for injury compensation unless they are injured by a third party's product or their state does not require employers to purchase work comp insurance.