Definition of Workers Compensation
Workers' compensation is insurance purchased by employers to help pay for the costs associated with injuries sustained at work by their employees. Workers' compensation programs provide no-fault insurance for lost wages, medical costs and death benefits for workers who are injured or killed while working and performing their normal job requirements. Workers' compensation death benefits may also be provided to certain surviving beneficiaries if a worker dies.
The goal of workers' compensation was to eliminate the need for workers who are injured at work to file a personal injury claim to receive compensation for their injuries. Workers' compensation insurance eliminates the need to prove the employer's negligence caused the injury and instead provides immediate relief. In most cases the employee forfeits their right to sue their employer to receive more compensation (although they may retain the right to file a third party suit against another entity who contributed to their injuries).
The benefit is workers save time and money and the employer saves money defending lawsuits. Unfortunately, some workers will find their workers' compensation insurance may not be sufficient to provide compensation for their injuries and may need to hire a work comp lawyer to fight for more benefits. Additionally, some states do not require workers to purchase work comp insurance and the worker may have to file an injury claim if they are injured.