Workers’ compensation  is an insurance that pays for medical expenses and wage replacement if an employee is injured or develops an illness on the job. However, the ailment cannot be self-inflicted or take place because the employee violated your business’s policies.
Employees might file a workers’ compensation claim if they fall off a ladder, suffer from hearing loss, or develop chronic back problems. If the employee is unable to work, workers’ compensation provides wage replacement while they are out. Benefits also cover payments for medical treatment.
Most states require you to purchase workers’ compensation insurance to reimburse employees if they have an accident. Depending on how many employees you have and where your business is located, your state might not require insurance. However, purchasing workers’ compensation insurance protects your business from lawsuits.