Workers’ compensation laws are designed to ensure medical coverage for employees and limit liability to employers for on the injuries. Every country in the western world has industrial compensation laws. Also known as workers’ comp or workman’s comp, this system provides, at a minimum, medical treatment and time loss benefits for employees who are injured in the course of their employment.
Industrial insurance laws vary from state to state. Most states permit private insurance companies to sell workers’ compensation insurance to employers. However, some states have a public compensation system or a hybrid private and public system. State and federal laws vary, but typically when an employee is injured on the job, he or she files a claim with the employers’ industrial compensation insurer or the state agency that administers industrial insurance claims.
Typically under workman’s compensation laws, an employee has no right to sue his or her employer for any liability or negligence for an on the injury. This no-fault system limits the employer’s liability exposure and guarantees medical coverage for employee on the job injuries. Wage loss, permanent disability damages, and survivor benefits can all be part of an industrial injury claim. Most employers are required by law to provide their employees be covered by industrial insurance.
There are different workers’ compensation laws for different types of occupations, injuries or employers. Federal government employees, military service members, and those employed in longshore, harbor work, seamen, coalmining, fishing, fish processing, nuclear energy, and railroad occupations all have separate industrial compensation laws. Some occupations, such as agricultural workers, may be excluded from industrial insurance laws.