Worker’s Compensation is a type of government-assigned insurance that aims to provide sure, prompt financial and medical benefits to the victims (and/or their dependents) of work-related accidents, regardless of who is responsible. It is also known as Workers’ Comp, in short.
Every nation or state has its own workers’ compensation laws and commissions in place, and some run their own insurance programs. However, most require employers to carry worker’s compensation insurance with private or state-approved insurance companies.
Neither the state nor the federal government contributes any funds for workers’ compensation. Employers are responsible for assuring these compensations and these are usually a certain portion of the employee payroll saved up for them so that specific benefits can be provided to the employees when necessary.
Types of Benefits Covered by Workers’ Compensation
There are four major employee benefits that are covered by the workers’ comp and they are -
- Medical Coverage
- Wage Benefits
- Vocational Rehabilitation
- Death Benefits
Health insurance and rehab coverage ensure good work relationships in workplaces since employees feel taken care of and employers feel responsible for the workers’ safety.
Use of the Term in Sentences
- Workers’ compensations hold employers responsible for any unwanted event that may occur at work so that they care about the wellbeing of the employees.
- Workers’ compensations differ from nation to nation and between states in the USA which means very similar conditions will see different compensations based on the location.