Workers’ Compensation 101

Workers' compensation insurance hero

Question 1

What is Workers’ Compensation coverage?

Insurance that protects employers and their employees if a workplace accident or illness occurs. Coverage provides benefits, such as medical care and compensation for lost income, to employees who suffer accidental injury or an occupational disease on the job.


Workers’ Compensation Coverage Includes

medical coverage


Pays for an injured employee’s medical bills, including doctor visits and hospital care to prescription medication, physical therapy and other medical treatments.



Partial replacement of income due to lost time on the job.

Vocational Rehabilitation

Enables employees to learn a new skill if they cannot return to their prior occupation due to injury.

death benefits

Death Benefits

Paid to the spouse and minor children of an employee who dies in a work-related accident.

Keep In Mind

  1. Coverage must be in place when you hire your first employee
  2. You renew your policy annually
  3. There is no set limit for statutory workers’ compensation coverage – but amounts paid to each injured employee is set by the workers’ compensation board in each state
  4. Workers’ compensation coverage is not a substitute for health insurance – employees are only covered for on-the-job injuries or illnesses

Next Question: Why Does a Business Need it?

The information contained in this website represents the products and services available through one of the business groups of Automatic Data Processing Insurance Agency, Inc. (ADPIA). ADPIA services mid and large size clients with various insurance products and services through its other business groups.

All insurance products will be offered and sold only through Automatic Data Processing Insurance Agency, Inc., its licensed agents or its licensed insurance partners, 1 ADP Blvd., Roseland, NJ 07068. CA license # 0D04044. Licensed in 50 states. Automatic Data Processing Insurance Agency, Inc. is an affiliate of ADP, LLC. Certain services may not be available in all states. Certain services are provided through the carrier partners and an additional carrier fee may apply. ADP and the ADP Logo are registered trademarks of ADP, LLC. Copyright © 2016 ADP, LLC.