What Is Workers Compensation – And Workers Compensation Insurance?
In general, the current Workers Comp system represents a compromise between employers and employees regarding employment-related injuries or illnesses. Basically, employees relinquish their right to sue employers if they suffer some job-related injury or illness. In return, employers agree to provide state-mandated benefits if such injuries or illnesses occur. To ensure employers will have the money to pay these mandated benefits, most states require that employers demonstrate that they have the financial ability to pay any claims that may arise. Typically, this financial ability is demonstrated through the purchase of Workers’ Compensation insurance.
Related Questions
- What if the employer misrepresents an employee as an independent contractor to avoid obtaining workers compensation insurance or to decrease their premium?
- As a sole employer or the sole owner/employee of a business, can I obtain workers compensation insurance to cover myself?
- What Is Workers Compensation - And Workers Compensation Insurance?
