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Workers’ compensation insurance is a type of coverage employers may purchase to protect their businesses in the event an employee is injured on the job. Without such coverage, a business may be forced to close its doors if it is found to be liable when an employee suffers serious injury or death on the job. Workers’ compensation insurance generally limits an employer’s liability in such situations. Additionally, workers’ compensation insurance provides coverage to employees who are injured while working.
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After suffering an injury, employees may file a workers’ compensation claim and submit proof of their damages to recover costs associated with the injury, such as medical expenses. Employees may also claim some of the wages they have lost through a workers’ compensation claim if they were unable to work while recovering. However, there are caps in place that limit how much in lost wages an injured worker may claim. In many cases, workers’ compensation benefits are available regardless of who was at fault for the injury.