Workers' Compensation
Insurance that provides wage replacement and medical benefits to employees who are injured or become ill on the job. In exchange, employees give up the right to sue their employer for negligence. Workers' comp is required in nearly every state for businesses with employees.
Real-World Example
A warehouse worker injured their back lifting heavy boxes. Workers' comp covered their medical treatment and a portion of their lost wages during recovery.
Related Terms
Disclaimer: This glossary entry is for informational purposes only and does not constitute financial or insurance advice. Consult with a licensed insurance professional for personalized guidance. GuardianChoices may earn affiliate commissions from links on this site — see our advertiser disclosure.
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