Small Business Dictionary

Workers' Compensation

Workers' Compensation, also known as Worker's Comp or Workman's Compensation, is insurance that covers past and future medical expense and wage loss in case an employee is injured or disabled on the job. Required by most states, Workmans Compensation can be obtained typically through a private insurance carrier or a state-operated fund. Benefits provided for Workers' Compensation are exchanged for the worker's right to bring litigation against an employer for negligence.