Who typically pays for workers' compensation insurance?

Workers' compensation insurance is designed to provide financial support and medical coverage for employees who are injured or become ill as a direct result of their work. This system is structured to protect both the employee and the employer; employees receive necessary benefits without having to prove fault, while employers are protected from lawsuits related to workplace injuries.

The responsibility for paying for workers' compensation insurance falls to the employer. In most jurisdictions, employers are mandated to carry this insurance as a form of risk management, safeguarding against potential liability from work-related injuries and accidents. The premiums for the insurance are typically calculated based on factors such as the nature of the work, the company's safety record, and the overall risk levels associated with the job roles within the organization.

In contrast, while employees benefit from the coverage, they do not directly pay for this insurance, nor is it covered by the federal government on a universal basis. The payment structure is designed to ensure that employees are not financially burdened by work-related injuries while placing the responsibility on employers to manage and fund the insurance program.