Workers Compensation

Workers Compensation Insurance

Workers Compensation Insurance  is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.   In exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence. The tradeoff between assured, limited coverage and lack of recourse outside the worker compensation system is known as “the compensation bargain”.

While plans differ among jurisdictions, provision can be made for:

  • Weekly payments in place of wages (functioning in this case as a form of disability insurance),
  • Compensation for economic loss (past and future),
  • Reimbursement or payment of medical and like expenses (functioning in this case as a form of health insurance),
  • Benefits payable to the dependents of workers killed during employment (functioning in this case as a form of life insurance).

General damage for pain and suffering, and punitive damages for employer negligence. Generally not available in workers’ compensation plans, and negligence is generally not an issue in the case. These laws were first enacted in Europe and Oceania, with the United States following shortly thereafter.


Income replacement benefits are based on whether the disability is total or partial and whether it is permanent or temporary. Impairment is generally defined as a reduction in earnings capacity, sometimes using the American Medical Association’s criteria.

Most states require that benefits be paid for the duration of the disability, but some specify a maximum number of weeks, particularly for temporary disabilities. The benefit amount is a percentage of the worker’s weekly wage (actual or state average).

Call us or email us at Atlantic Coast Auto for more information or to get your policy started.  Take care of yourself, your business and your employees.