The main purpose of workers compensation is to preserve the relationship between employee and employer so that the employee can be compensated without having to sue the employer.

Under each state’s worker compensation statute, there are different types of coverages: medical expenses, disability benefits, physical loss such as a loss of limb, and death benefits.

Medical coverage is intended to pay for doctors’s bills, hospital expenses and rehabilitation cost associated with a work related accident or illness.

Depending on whether the injury is partial or total, temporary or permanent, a claimant will receive payments based on a schedule of benefits. Usually, the statute will specify that a disable employee receives a wage reimbursement equal to a percentage of his or her weekly salary but subject to a maximum amount.

The fundamental concept of the workers compensations and employers liability insurance policy is that employer is responsible for paying benefits to an employee injured on the job, whether or not either party was negligent. Although laws vary substantially from state to state, the benefits granted by workers compensation are intended to be an employee’s exclusive remedy for claims against their employer in all states.