Workers’ Compensation 101

Workers' compensation insurance hero

Question 6

What is Covered?

  1. Accidental on-the-job injuries – Examples: An employee falls off a ladder, slips on wet floor…or suffers a cut, burn, or other injury while operating machinery.
  2. Occupational diseases or illnesses – Examples: A computer programmer suffers carpal tunnel syndrome, an employee contracts a respiratory disease like black lung or cancer…or a worker develops an illness caused by stress in the workplace.


Employer’s liability coverage is included in workers’ compensation coverage to protect employers from legal liability relating to an employee’s job-related injury or illness.

  1. Protection from lawsuits from outside individuals or companies that may be adversely affected by an injury to a worker.
  2. Policy limit pay outs – per employee, per injury, and per illness.
  3. Typically covers legal fees, court costs, damages and settlements.

Next Question: How are workers' compensation premiums calculated?

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