Workers Compensation Definition

Workers compensation is a publicly sponsored system that pays monetary benefits to workers who become injured or disabled in the course of their employment.

Workers compensation definition.

Workers compensation is also distinguishable from other personal injury laws where negligence is a factor because although the employer is liable for paying injured workers benefits the purpose of workers compensation is not to punish or hurt the employer. Workers compensation is a mandatory type of business insurance that provides employees who become injured or ill while on the job with medical coverage and income replacement. Workers compensation or workers comp formerly workmen s compensation until the name was changed to make it gender neutral is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee s right to sue his or her employer for the tort of negligence. It also protects companies from being sued by employees for the workplace conditions that caused such an injury or illness.