What Is Workers Compensation Insurance


Every business knows that it is important to have comprehensive coverage for its employees, but what is workers compensation insurance, as far as what it covers? There are a wide variety of features a package can include, specialized for individual risks. However, there are some common coverages included in most programs.

For an Injury

If an employee is injured on the job, workers comp covers aspects of their recovery including:

  • Income lost while on medical leave
  • Medical bills related to the injury
  • Compensation if a long-term condition prevents future performance
  • Rehabilitation after medical procedures to restore ability to work

Injured employees do not receive compensation for their pain and suffering under these programs. Typically, wage replacement involves two thirds of the employee’s salary, though the amount is untaxed.

For a Death

If an employee suffers a fatal injury on the job, insurance covers the wages his or her survivors must go without. The amount and extent of this compensation varies depending on the program.

In nearly all cases, workers comp is required by law for businesses that have one or more employee. So if your business is wondering “what is workers compensation insurance,” it’s time to talk to an experienced insurance provider that can explain your benefits and provide you with a package suited to your needs.