What is Workers' Compensation?

Workers' compensation is a form of insurance that provides payments to employees who are injured in the course of employment, no matter who is at fault. These payments cover wage replacement, medical care for the injury, disability compensation, costs for retraining, and survivor benefits, but do not cover pain and suffering. In return for these payments, the employee agrees not to sue the employer for personal injury.  In most U.S. states, employers are required to subscribe to workers' compensation insurance. 

Although employees collecting workers' compensation payments may not sue for personal injury, they still may need the help of an attorney for workers' compensation claims. Employees may want to hire a workers' compensation or personal injury attorney when they are refused benefits to which they are entitled, are told that they can return to work before they are actually medically able, or are denied extended or permanent disability despite significant disabling injury.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.