Workers’ compensation is a type of insurance that provides benefits to employees who are injured or become ill as a result of their job. The purpose of workers’ compensation is to provide financial support to workers who are unable to work due to a job-related injury or illness, as well as to help cover the costs of medical care and rehabilitation.
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Under workers’ compensation, employees who are injured or become ill on the job are entitled to certain benefits, including:
- Medical expenses: Workers’ compensation covers the cost of medical treatment related to the work-related injury or illness, including hospitalization, medication, and rehabilitation.
- Disability benefits: If an employee is unable to work as a result of their work-related injury or illness, workers’ compensation provides disability benefits to help replace lost wages.
- Vocational rehabilitation: If an employee is unable to return to their previous job as a result of their work-related injury or illness, workers’ compensation may provide vocational rehabilitation services to help the employee re-enter the workforce in a different capacity.
Workers’ compensation is typically mandatory for most employers in the United States, and the specific requirements vary from state to state. Employers are required to purchase workers’ compensation insurance to cover their employees, or they may choose to self-insure if they meet certain financial requirements.
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Overall, workers’ compensation provides important protections and benefits for employees who are injured or become ill as a result of their job, and helps ensure that they are able to receive the care and support they need to recover and return to work.