Workers’ comp, also called workers’ compensation refers to an insurance policy tailored to provide compensation for an employee injured in the workplace in medical fees and wage replace as long as the employee forfeits the right to sue the employer for any type of negligence or cause or liability for the injury. It also covers occupational related diseases contacted in the course of employment. The underlying assumption in a workers’ comp agreement is that accidents resulting injuries can still occur in any workplace despite everybody’s best efforts in preventing them.
In a workers’ comp agreement, the insurance policy assists the injured employee in overcoming financial hardships as a result of an injury in the workplace and for being out of work for a long period of time. However, it has to be proven that the injury or work related disease occurred in the course of employment. There are laws governing workers’ com in every state with a few differences from one state to another. In addressing liability claims, workers’ comp laws do not consider any issue related to fault or negligence by the employer in the employee’s pursuit of benefits. This is because the employee had initially relinquished the right to sue for punitive damages, negligence, and assumption of risk.
It has however become mandatory in most states for every employer to provide workers’ comp if he or she has a sizable staff. Exception is given to owners of small and mid-sized offices, independent contractors, and employers of farm and domestic workers. Under this agreement, it is illegal for an employer to fire a worker who files a workers’ comp claim after suffering an injury or disease in the workplace. The insurance is beneficial to employees because it provides adequate financial compensation especially when they can not continue working due to a work-related injury or disease.