The Basics Of Workers Compensation Insurance

May 13, 2015 Dave Weber No Comments



In the USA, if an employee is injured on the job, the injured employee will automatically receive pre-defined benefits that will pay for: medical bills, lost wages, permanent disabilities, and death benefits.   Employers are required to carry workers compensation (WC) insurance to cover these expenses.   The Insurance Information Institute has a detailed primer on WC that can be viewed here.  This overview addresses questions like:

  • What is work comp insurance?
  • What injuries are covered?
  • What benefits do injured workers receive?
  • Do I have to buy work comp insurance?
  • How are premiums determined?
  • Can an employee who has an accident sue me?
  • Does work comp insurance cover travel?
  • What factors affect my premiums?
  • How can “second injury funds” limit my costs?


Workers compensation insurance benefits are state specific.   Here’s a link to a chart  that compares WC benefits from state to state.  WC costs are a significant cost of doing business.  When companies are considering re-location, one of the factors usually evaluated is the level of WC benefits in the various states being considered for the new location .


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