Workers’ compensation Workers’ compensation is a reparation prepared to assist employees who have had to discontinue working due to injuries acquired on the job or illness. This state law assists in providing income benefits to supplement regular earnings for a temporary period of time. Companies are encouraged to invest in adequate workers’ compensation insurance policies to cover such claims in a manner that is efficient and effective for both the employer and the employee. However, some organizations choose to fund certain claims on their own by simply ensuring adequate capital is available for unforeseen circumstances. Replacement benefits are often temporary and the terms and conditions are discussed on a personal basis with the employee receiving assistance.
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