Workers’ Compensation Insurance protects employees under state laws, and provides medical care, death, disability and rehabilitation benefits for workers who are injured or killed while on the job. The insurer agrees to pay all compensation and benefits related to the insured employer’s state’s workers’ compensation laws. Workers’ compensation coverage premiums are based on the employer’s payroll and the type of duties its employees perform.

Workers’ compensation insurance is a significant expense for employers and is legally mandated in nearly every state in the United States. Employers may pay more if the company has had a certain number of previous claims, or if its employees have certain occupations that are deemed dangerous.