What is Workers Compensation?

Workers Compensation is a government mandated program to provide benefits to workers who are injured while working. It is essentially like an insurance providing cash and/or healthcare benefits to these workers. In United States, the benefits are controlled and regulated by the state and vary a lot from state to state.

Important things to note:

• By accepting workers’ compensation benefits, the employee waives the right to sue their employer for damages. This is due to the fact in such cases, no one party is assumed to be at fault.
• The compensation may include both salary and healthcare benefits.
• Worker's comp however is not the same as unemployment benefits or disability insurance.

Worker's Compensation is also known as Workers Comp.

Although workplace incidents have decreased over time as technology and equipments improve, they still remain a prevalent issue. According to U.S. Bureau of Labor Statistics, the number of cases have dropped from 3.6 nonfatal cases / 100 employees in 2009 to 2.8 / 100 employees in 2019.

The most frequent causes of injuries are as follows:

• 31% - due to a reaction to overexertion for e.g lifting objects or performing repetitive motions
• 28% - Falls, slips and trips
• 25% - Contact with objects or equipment
• 6% - Transportation incidents
• 5% - Violence and other injuries caused by a person or an animal
• 4% - Exposed to harmful environments or substances

Since each state has its rules and mandated programs and benefits, the cost of workers' comp insurance varies by state. The rates also basis the fact whether the job is low-rish or high risk.