compensation insurance

What Are Workers’ Compensation Benefits?

Workers’ compensation, also known as “workers’ comp,” is a government-mandated program that benefits employees who become injured or unwell on the job or as a result of the job.

It is essentially a disability insurance program for employees, providing cash benefits, healthcare benefits, or both to those who endure injury or illness on the job.

States are primarily responsible for administering workers’ compensation in the United States. State by state, the required benefits differ significantly.

Texas is the only state where employers are not required to carry workers’ compensation insurance.

Benefits for Workers’ Compensation Claims

The requirements for workers’ compensation can vary from state to state, and in certain areas, not all employees are required to have it. Some states, for instance, exclude smaller companies from the need that they maintain health insurance coverage. Others must adhere to a variety of standards depending on their industry. The National Federation of Independent Businesses (NFIB) provides an overview of the applicable worker compensation regulations in each state.