Workers' Compensation insurance policies actually provide two types of protection. One covers the cost of medical expenses and disability payments if employees are injured or exposed to illness-causing substances while on the job. The other provides businesses with liability protection in case they are sued for damages arising from employment-related accidents or diseases.
Typically, Workers' Compensation will pay for:
- Medical benefits for job-related injury or disease
- Disability income benefits, including compensation for lost wages
- Rehabilitation benefits to help an injured worker return to productive work
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