Coverage for on-the-job injuries
Published May 30, 2026
Workers' compensation insurance pays medical costs and a portion of lost wages for employees who are injured or become ill because of their job. Most states require it once a business has employees, regardless of who was at fault.
What it covers
Workers' compensation generally covers medical treatment, partial lost wages during recovery, rehabilitation, and benefits to dependents in the event of a workplace death. It applies regardless of fault.
Why it is required
Most states require employers to carry workers' compensation once they have employees. In exchange for these no-fault benefits, employees generally give up the right to sue the employer over the injury.
What affects cost
Premiums depend on your payroll, the type of work, and your claims history. Safer workplaces and good safety records can lower the cost over time.
Frequently asked questions
＋ Is workers' compensation required?
Most states require it once a business has employees, though the rules and thresholds vary. Penalties for going without it can be significant.
＋ What does workers' compensation cover?
It generally covers medical care, a portion of lost wages, rehabilitation, and benefits to dependents after a workplace death, regardless of who was at fault.
＋ What affects workers' compensation cost?
Premiums depend on payroll, the type of work, and your claims history. A strong safety record can reduce costs over time.
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Educational content only — not legal, financial, or insurance advice. Requirements and pricing vary by state.