Workers’ compensation is a form of insurance policy that covers an employee’s medical benefits and wage assessment in an event where the employee is injured, disabled, or fell to an illness in the course of employment due to an employer’s disregard and other work related factors. It is designed to replace an employee’s right to take legal action against his or her employer in the event of negligence. This insurance policy protects the business from insolvable legal cases and excessive compensation that could damper the usual flow of the business.
The coverage plan for Workers’ Compensation varies according to the business type, risk and provisions specifically made for the line of business. Basic coverage includes policies for disability, medical expenses, reimbursements, health, and life insurance. This, however, does not include if the injury, disability or illness is inflicted by a co-worker, if the injured employee failed to utilize precautions required by work safety regulations, and if the injured employee is made aware and did accepted the risk associated with the job description.
Workers’ compensation is supported by common-law remedies which prescribes safety measures and guidelines to aid the employer in adhering to these provisions, common-law guidelines include providing a safe work environment; provide safe tools; warning labels and devices; providing adequate training to employees, propagating and enforcing work safety.