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Principles of Risk Management and Insurance, 13th Edition by Michael McNamara, George E. Rejda

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Workers Compensation Insurance

Millions of workers are injured or become sick each year because of job-related accidents and diseases. All states have workers compensation laws that require employers to provide benefits to workers who have a job-related injury or occupational disease. Employers can meet their legal obligations to injured workers by purchasing a workers compensation insurance policy, through self-insurance, or by purchasing the coverage from a competitive or monopolistic state fund in some states.

As stated in an earlier chapter, workers compensation insurance provides medical care, cash benefits, survivor benefits, and rehabilitation services to workers who are injured or die from job-related accidents or diseases. The benefits ...

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