Workers’ comp is an abbreviation for workers’ compensation, which refers to laws that are meant to provide protection for the average worker. Basically, workers’ comp is designed so that in case an accident that happens at the workplace, the worker and his family will be taken care of. In addition to accidents, illnesses due to the work environment are also covered by workers’ comp. While workers’ comp is designed to provide protection for the worker, it also extends protection to the employer. It does so by stipulating the relinquishing of the worker’s right to sue the employer. This is the trade off when one has worker’s comp. On the one hand, the worker has insurance for work-related injuries and illnesses. On the other hand, the worker will not be able to sue for such incidents. Other terms for workers’ comp are workman’s comp and compo.
The details of worker’s comp insurance plans vary widely depending on the location. In general, however, workers’ comp covers three areas. One, a worker can receive weekly payments in lieu of his wages in case he gets disabled due to a work-related accident. This is a form of disability insurance. Two, a worker may receive money for medical expenses due to a work-related accident or an illness due to the work environment. This is a form of health insurance. Three, the family or beneficiaries of a worker may receive monetary compensation in case the worker passes away due to a work-related accident. This is a form of life insurance.