Workers’ compensation is insurance that provides medical expenses, lost wages and rehabilitation costs to employees who are injured or become ill at work. It also pays death benefits to the families of employees killed on the job.
With a few exceptions, all states require employers to purchase workers’ compensation coverage for non-owner employees. When an employee is injured, they can file a claim through their employer’s workers’ comp insurance company rather than sue their employer. Failure by employers to obtain workers’ compensation coverage may result in fines, possible imprisonment and losing the right to operate their business in the state.
Learn more about workers’ compensation here.
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