Workers’ compensation provides cash benefits or medical care for workers who suffer an injury or become ill due to their workplace.
Workers’ compensation systems were established to provide partial medical care and income protection to employees who are injured or become ill from their job. These systems also provide employers incentives to reduce work-related injury and illness. A majority of employers buy workers’ compensation insurance coverage through private insurers or state-certified compensation insurance funds. Larger employers may also have the option to self-insure. These systems are complex and governed by state laws.
Workers’ compensation claims may be filed after a worker is injured or becomes ill due to their job. Claims include the nature of injury/ illness, how the injury/ illness occurred, the type and cost of medical care received, cost of partial wage replacement, the number of days off work, and injured worker characteristics (occupation, age, gender, time with the employer, etc.).