Workers Compensation
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 Misconceptions
Misclassifying employees as independent contractors to avoid WC — major compliance risk. Operating in monopolistic states without the state fund where required.
Related Terms
Browse the Insurance Claims Glossary
Looking for more insurance and claims terminology? Browse the complete A-Z glossary or explore the Claims Pages Academy for licensing guides, coverage explainers, and more.
Back to Glossary Claims Pages AcademyThis definition is provided for informational and educational purposes. Insurance terminology may vary by jurisdiction, policy, and context. Consult a licensed professional for guidance specific to your situation.
