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Workers' compensation is a system of insurance that provides benefits to employees who are injured or become ill as a result of their work. The system is designed to protect employees and their families from the financial burden of lost income and medical expenses that may arise from a work-related injury or illness.
In most cases, workers' compensation is a no-fault system, meaning that employees are entitled to benefits regardless of who was responsible for the injury or illness. Benefits may include medical expenses, lost wages, and compensation for any permanent disability that results from the injury or illness.
Employers are required by law to provide workers' compensation insurance to their employees. The cost of the insurance is typically paid for by the employer, and the benefits are paid directly to the employee or their family.
The workers' compensation system is regulated by state laws and administered by state agencies. Each state has its own set of rules and requirements for workers' compensation, including which employers are required to provide coverage, the types of injuries or illnesses that are covered, and the types of benefits that are available to employees.