The Basics Of Workers Compensation Insurance

May 13, 2015 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 .

The use of this website constitutes your acceptance of our Terms of Use

Safety Articles

Translate This Page