The DARB Insurance Services Blog

Basic Overview
Workers Compensation Insurance is basically a form of no-fault insurance. It
gives employees the right to collect from their employers for injury, disability,
or death when the incident occurs within the course of employment. Workers
Compensation laws are designed around the idea that employers should be
charged with the cost of most work-related injury or occupational disease
regardless of who is at fault. Therefore, there is no assumption of risk or
contributory negligence. In return, these benefits are the exclusive remedy
available to employees against employers for injuries covered by WC laws. In
other words, employees cannot sue employers in court to obtain additional
compensation.

Benefits Provided
Workers Compensation laws vary from state to state, but in general, the
benefits fall under one of four categories:
Disability/Loss of Income: This benefit basically compensates employees
who are unable to work as the result of a work-related injury. It replaces a
portion of the lost income, not all.
Medical: This benefit pays for the costs of various medical services required
because of an employment related injury. There is no upper limit or time
period limit for which these expenses will be paid.
Survivor/Death: This benefit pays the surviving spouse, children, or other
relatives of an employee when the employee’s death is the result of a
work-related injury. In general, this compensation includes a weekly stipend
and a stipulated sum for funeral expenses.
Rehabilitation: This benefit basically compensates employees for the cost of
medical rehabilitation, such as physical therapy, due to a work-related injury.
It can additionally provide for vocational rehabilitation, such as retraining for
a different/new occupation. The expenses mest be reasonably justifiable.

Compensible Injuries
Work-related injuries, in regards to workers compensation laws, must arise
out of employment and arise in the course of employment. Three factors are
used to determine if the injury arose in the course of employment- time,
place, and circumstances. As such, the injury must occur during working
hours (during the time that work is actually being performed for the purposes
of employment), and occur at the place of employment or where employment
duties are actually being performed.