Legal Definitions - workers' compensation

Workers' compensation

Workers' compensation is a type of insurance that provides benefits to employees who are injured or become ill as a result of their job. This insurance covers medical expenses, lost wages, and rehabilitation costs for the employee.

1. John works in a factory and injures his hand while operating a machine. He is unable to work for several weeks while he recovers. His employer's workers' compensation insurance covers his medical bills and lost wages during this time.

2. Maria is a nurse and contracts a contagious disease while working with patients. She is unable to work for several months while she recovers. Her employer's workers' compensation insurance covers her medical bills and lost wages during this time.

These examples illustrate how workers' compensation insurance provides benefits to employees who are injured or become ill as a result of their job. In both cases, the employees were unable to work and incurred medical expenses, but their workers' compensation insurance covered these costs.