Workers Compensation Definition

Workers compensation or workers comp formerly workmen s compensation until the name was changed to make it gender neutral is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee s right to sue his or her employer for the tort of negligence. Workers compensation is a publicly sponsored system that pays monetary benefits to workers who become injured or disabled in the course of their employment. Workers compensation definition is a system of insurance that reimburses an employer for damages that must be paid to an employee for injury occurring in the course of employment.

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Workers compensation is a type of business insurance coverage that helps pay for medical expenses and rehabilitation costs if an employee sustains a work related illness or injury.

Workers compensation definition.

Workers compensation is also distinguishable from other personal injury laws where negligence is a factor because although the employer is liable for paying injured workers benefits the purpose of workers compensation is not to punish or hurt the employer. See the complete list of workers comp faqs. It also protects companies from being sued by employees for the workplace conditions that caused such an injury or illness. Workers compensation is a mandatory type of business insurance that provides employees who become injured or ill while on the job with medical coverage and income replacement.

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