Workers’ compensation insurance, commonly known as workers’ comp, is insurance that covers medical expenses and portion of lost wages for employees who become injured or ill on the job. Coverage also includes employee rehabilitation and death benefits.
Workers’ compensation insurance is required by law. Choosing not to have workers’ comp puts your business at high financial risk. Not only can you face a lawsuit for workplace injuries, but you most likely will be fined for breaking the law. Keep in mind, workers’ comp protects not only your employees, but your business too. If your insurance is compliant with state law, an employee who receives benefits cannot sue you for their injuries or lost wages.
An employee can only receive benefits if their injury or illness relates to their job duties or employment, regardless of employee negligence.