Workers Compensation Definition

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Workers compensation definition. Workers compensation is also distinguishable from other personal injury laws where negligence is a factor because although the employer is liable for paying injured workers benefits the purpose of workers compensation is not to punish or hurt the employer. Workers compensation is a publicly sponsored system that pays monetary benefits to workers who become injured or disabled in the course of their employment. Workers compensation is a mandatory type of business insurance that provides employees who become injured or ill while on the job with medical coverage and income replacement. It also protects companies from being sued by employees for the workplace conditions that caused such an injury or illness.