Workers Compensation Insurance (WC)
There is the Federal Workers Compensation Law, that mandates that employers are responsible for employee’s injuries, disability and death, from a work related accident, regardless of fault. This law is for every employer, regardless of how many employees or what type of business it may be. The WC law mandates certain types of employers to carry the Workers Compensation Insurance to satisfy the law. Other types of business owners that are not required to carry the WC insurance are simply self-insuring themselves, and must comply with Workers Compensation Laws when an employee is injured. Even though a business owner may not be mandated to carry the WC insurance, they can purchase the WC insurance for protection.
Workers’ compensation insurance provides wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence.