Workers Compensation Insurance

Insurance that pays benefits on behalf of an insured employer to employees or their families in the case of injury, disability, or death resulting from occupational hazards.

Coverage providing four types of benefits (medical care, death, disability, rehabilitation) for employee job-related injuries or diseases as a matter of right (without regard to fault). This insurance is usually purchased by the employer from an insurance company, although in a few states there are monopolistic state funds through which the insurance must be purchased. The premium rate is based on a percentage of the employer's payroll and varies according to the employee's occupation. See also Workers Compensation Benefits.