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Insurance & Bondingaka: workers' compaka: WCaka: employer's liability

Workers' Compensation

In Plain English

Insurance that pays medical bills and lost wages for workers hurt on the job.

Definition

Workers' compensation insurance provides medical and wage replacement benefits to employees who suffer work-related injuries or illnesses, regardless of fault. In exchange, employees generally waive the right to sue the employer for negligence. Most states require employers to carry workers' compensation coverage, and construction contracts routinely require subcontractors to maintain it before beginning work on the jobsite.

Example

A carpenter who falls from scaffolding receives medical treatment and two-thirds of his weekly wages through the contractor's workers' compensation policy while he recovers.

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