Workers’ compensation (often abbreviated as workers’ comp) is a type of insurance that provides benefits to employees who are injured or become ill because of their job. It’s designed to cover medical expenses, rehabilitation costs, and a portion of lost wages for employees who are injured on the job.
Generally, workers’ compensation benefits are available to:
- Employees: Most employees are covered by workers’ compensation laws. This includes full-time, part-time, seasonal, and sometimes even temporary workers, depending on the jurisdiction.
- Certain Contractors: In some cases, independent contractors may also be eligible for workers’ compensation benefits if they meet specific criteria that classify them as employees under the law.
- Employers: Employers are typically required by law to provide workers’ compensation coverage for their employees. The specific requirements and regulations vary by state or jurisdiction.
Workers’ compensation is important because it helps protect both employees and employers. It ensures that employees receive necessary benefits in case of work-related injuries or illnesses, and it shields employers from potentially costly lawsuits related to workplace injuries.
