What is the definition of Workers Compensation?

Workers Compensation provides for the employee's income benefits and medical expenses. These include the treatment of the insured employee, including physician's fees, surgical fees, physical rehabilitation and medical care. This is a government-sponsored benefits program. The state also regulates the benefit payment amounts and limits.

Workers compensation is provided if the employee signs a waiver promising that he will not file a lawsuit against the employer for liabilities.

Workers compensation covers for medical expenses (surgeries, medical care and physical rehabilitation) and income benefits for the employee. This is in exchange for the employee's waiver saying that he will not sue the employer for liabilities.

Workers compensation only provides benefits for loss of income and expenses due to a work-related illness or accident. It does not pay the employee for emotional or non-economic damages, such as the pain and despair the injured employee experiences.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage