What is Worker's Compensation Insurance?
Workers' compensation insurance pay benefits to employees for injuries incurred on the job. It is a mandatory coverage in a majority of states. Thus, most businesses that employ workers are obligated by law to purchase workers' compensation coverage.
Workers' Comp pays for medical expenses for employees and salaries for injured workers, as well as the employer's cost of a Workers' Comp lawsuit. Ex: An employee falls down the stairs at work and breaks his leg. His employer's Workers' Compensation Insurance covers his ambulance, hospitalization, and other medical bills.