Employers have a legal responsibility to their employees to provide for a safe workplace. However, despite every precaution to safeguard against workplace injuries and illnesses, accidents do happen. Therefore, in almost every state, businesses are required to purchase Worker's Compensation Insurance to protect their employees against such occurrences. 

Worker's Compensation is a system of insurance that compensates employees who are injured or suffer work-related illnesses, while they are in the conduct of their employment. Workers are protected while they are on the workplace premises, in another location that is work related, or while travelling away from their primary place of employment on company business.

Worker's Compensation directly covers the cost of medical treatment and rehabilitation services, and provides payments to injured workers for lost income resulting from time out of work, regardless of who was at fault in the accident. It also provides for death benefits to surviving spouses and dependents.

Individual state laws differ about how medical and rehabilitation services are provided; whether the employee or employer can choose the medical provider who treats the injuries; the amount and duration of lost income benefits; how the system is administered; and how disputes about benefits are resolved.

For specific information about how the system works in your state, consult with your employer or check the state Web sites in the State Rules and Regulations link at left.