What is workers compensation? Workers’ compensation (colloquially known as workers’ comp in North American English or compo in Australia) provides insurance to cover medical care and compensation for employees who are 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 workers compensation system is known as “the compensation bargain”. While plans differ between 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), and benefits payable to the dependents of workers killed during employment (functioning in this case as a form of life insurance). General damages for pain and suffering, and punitive damages for employer negligence, are generally not available in worker compensation plans.
Would you like to obtain work comp coverage for your workforce? Partner with a PEO to help provide big company rates and service for small to medium sized companies.
Workers Compensation - AMS Staff Leasing