{"id":5121,"date":"2016-04-04T10:47:57","date_gmt":"2016-04-04T15:47:57","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/liability-and-insurance\/workers-compensation-overview.html"},"modified":"2024-05-23T02:33:57","modified_gmt":"2024-05-23T07:33:57","slug":"workers-compensation-overview","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/workers-compensation-overview.html","title":{"rendered":"Workers’ Compensation Overview"},"content":{"rendered":"\n
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Workers' Compensation Overview<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n\n

Small business owners must have workers’ compensation insurance like larger business owners. In every state except Texas, businesses with even one employee must have workers’ compensation insurance coverage.<\/p>\n

Workers’ compensation is the system of laws granting health benefits to injured employees. Each state has its\u00a0workers’ compensation laws<\/a>, but generally, all laws follow the same policy.<\/p>\n

Employers have specific duties to their workers under the workers’ comp system. Employers must provide medical care, keep records of employee injuries, and send workers’ compensation claims to the state labor board as required.<\/p>\n

A workers’ compensation insurance policy ensures employees get treatment for work-related injuries. They can get treatment with or without private medical insurance.<\/p>\n

The Purpose of Workers’ Compensation Laws<\/h2>\n

Workers’ compensation laws take the place of litigation. Injured workers get medical care without bringing their cases to court. Workers’ comp benefits pay out if the injury happened on or because of the job.<\/p>\n

Workers’ compensation laws also protect employers and co-workers. They limit the amount employees can recover from medical expenses and partial wages. In most cases, employees can’t sue their co-workers for their injuries.<\/p>\n

Workers’ compensation is a no-fault system where the worker’s or employer’s negligence is not at issue. The employee gets full compensation for their injuries without litigation.<\/p>\n

Workers’ compensation is an injured worker’s exclusive remedy. They do not file a workers’ comp claim if they can show third-party involvement. They can sue the third party directly for damages.<\/p>\n

How Workers’ Compensation Works<\/h2>\n

In a typical personal injury or civil lawsuit, the injured party must file a claim against the defendant alleging\u00a0negligence<\/a>.\u00a0<\/i>Both sides can show evidence and allege the other side is partially at fault in the accident. Civil lawsuits can take months or years to resolve.<\/p>\n

Workers’ compensation insurance covers 100% of an injured worker’s medical treatment. There is no need to file a court case or show evidence for or against the employer or employee. The question of negligence on either side is not at issue. The employee waives all rights to file suit against the employer in exchange for full medical coverage while recovering.<\/p>\n

Workers’ comp is an adjunct to state and federal\u00a0disability benefits<\/a>. In some states, employees may apply for short-term disability payments while receiving workers’ comp. In other states, workers’ comp costs include partial wages if the employee cannot work.<\/p>\n

Injuries Covered by Workers’ Compensation<\/h3>\n

State laws determine exactly what workplace injuries workers’ comp insurance covers. In general, workers’ comp will cover all workplace injuries and illnesses, including:<\/p>\n