Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025
Definition
Worker's compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. It aims to eliminate the need for litigation by establishing a fixed set of compensations.
Related terms
Occupational Safety and Health Administration (OSHA): A federal agency that sets and enforces safety standards in the workplace to prevent employee injury and illness.
Disability Insurance: Insurance coverage that provides income in the event a worker is unable to perform their work and earn money due to a disability.
Liability Insurance: Insurance that provides protection against claims resulting from injuries and damage to people and/or property