Workers' Compensation

Workers' compensation laws are designed to provide fixed monetary awards to employees who are injured or disabled on the job, thereby representing a compromise between employer and employee that eliminates the need for litigation. Such laws are regulated and enforced at the state level, though there are federal workers' compensation laws that apply to federal workers, maritime workers, and mine workers.

Every state (with the exception of Texas and New Jersey) requires employers to obtain workers' compensation coverage. Most states allow employers to self-insure. Failure to obtain or establish coerage can result in heavy penalties, from monetary fines to imprisonment. State workers' comp laws impose varying limits and restrictions on filing procedures, filing periods, cash benefits, settlements, and even the types of injuries deemed "compensable."

Employers may comply with their state's insurance coverage requirement via a variety of coverage options, including commercial insurance, self-insurance, state funds, residual insurance, and other insurance alternatives available in their state.