What is Workers' Compensation?

Workers' Compensation definition

Worker's Compensation is a type of indemnity that pays employees who get hurt or sick when working, in exchange for resigning to the right to prosecute their employer for negligence.

Workers’ compensation is insurance that assumes an employee’s salary and medical benefits if they are injured or develop an illness while working. The compensation is provided in exchange for the employee resigning to their right to present charges against the employer for negligence regarding the accident suffered.

What benefits are usually offered on Workers’ Compensation?


  • Payment for economic loss.
  • Weekly or monthly payments to cover the salaries since they are not able to work.
  • Life insurance in case of the worker passing away.
  • Medical payments to cover the expenses of treating the injury.
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