Workers Compensation — Insurance Claims Definition
Workers Comp
Insurance providing medical benefits and wage replacement to employees injured in the course of employment, and protecting employers from most tort suits.
Workers compensation is a statutory system: benefits are defined by state law. Coverage is usually mandatory for employers with minimum employee counts. Exclusive remedy bars most employee suits against employers for covered injuries.
Examples
A warehouse worker strains a back lifting boxes; WC pays medical care and temporary disability benefits per state schedule.
Common Mistakes
Misclassifying employees as independent contractors to avoid WC — major compliance risk. Operating in monopolistic states without the state fund where required.
