What does Workers' Compensation Insurance Cover?

Workers' compensation has seen some big changes in 2023, but when you need it, what does it actually cover?

Workers' compensation insurance protects your employees in the event of a work-related illness or injury. As the name suggests, workers' compensation can only cover injuries or illness resulting from doing their work, but it does not cover injuries sustained outside of work. Nevertheless, it still covers a wide range of health expenses, including medical expenses, lost wages, ongoing care, and funeral expenses.

Medical Expenses

Workers' compensation provides coverage for those that suffer a work-related injury or illness. This can range from ER visits and ambulance rides to necessary prescriptions and surgeries. For example, if a tree trimmer cuts themself while working, workers' compensation insurance is designed to help cover the cost of a hospital visit or procedure. 

Ongoing Care

Some injuries are more severe than others and may require multiple visits for treatment. Workers' compensation helps to cover treatment and care for work-related injuries, such as doctor visits, physical therapy, and even psychiatric therapy if needed. 

Lost Wages 

In the case where workers need to take time off to recover from their injuries, workers' compensation can step in to provide coverage. For example, if your employee falls ill due to a work-related incident or condition, insurance can help cover the cost of their lost wages during the time they are out. 

Funeral Costs

It's a worst-case scenario that no employer wants to imagine: one of your employees loses their life from a work-related incident. Workers' compensation helps provide coverage for any funeral costs and can help also provide other death benefits to your employee's beneficiaries. 


Depending on where you work, workers may be at risk for developing allergies or other work-related illnesses. Workers' comp can help to provide coverage for any medical expenses and other treatment costs. 

Repetitive Injury 

Some work-related injuries occur over a number of months or years. Repetitive injuries like sciatica and tendonitis that can take time to develop are also generally covered under workers' compensation. For example, if an office worker develops carpal tunnel syndrome from typing too much, they are covered.  


Last but definitely not least, some severe injuries can disable your employee temporarily or permanently. Disability injuries can bring numerous medical bills and lost wages to your hardworking employee. Workers' compensation helps replace anything that could be lost during their recovery period. 

Regardless of the reasoning, workers' compensation helps to cover the cost of a variety of different injuries and ailments that can occur to your employees during work. However, it does not cover those who are under the influence or those who hurt themselves on purpose. Coverage varies from state to state, so it's important to state up-to-date on changes that could happen. 

Click here to see the updates that are happening to the CA Workers' Compensation Insurance and how they may affect you or your business.




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