Workers Compensation Definition

Workers compensation definition is a system of insurance that reimburses an employer for damages that must be paid to an employee for injury occurring in the course of employment.

Workers compensation definition.

Workers compensation is a type of business insurance coverage that helps pay for medical expenses and rehabilitation costs if an employee sustains a work related illness or injury. Workers compensation or workers comp formerly workmen s compensation until the name was changed to make it gender neutral is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee s right to sue his or her employer for the tort of negligence. Workers compensation is a mandatory type of business insurance that provides employees who become injured or ill while on the job with medical coverage and income replacement. Workers compensation is a publicly sponsored system that pays monetary benefits to workers who become injured or disabled in the course of their employment.