Workers' Compensation

## Workers' Compensation

Workers' compensation (workers' comp) is a no-fault insurance system that covers employees who are injured or become ill due to their job.

### Coverage

- Medical expenses related to the injury/illness.
- Wage replacement (typically 2/3 of average weekly wage).
- Rehabilitation costs.
- Disability benefits (temporary or permanent).
- Death benefits to dependents.

### How It Works

In exchange for guaranteed benefits, employees give up the right to sue their employer for workplace injuries. This 'grand bargain' provides certainty for both parties.

### Cost by Industry

Workers' comp premiums vary dramatically by industry risk:
| Industry | Approx. Rate (per $100 payroll) |
|----------|-------------------------------|
| Office/clerical | $0.20–$0.50 |
| Manufacturing | $1.00–$5.00 |
| Construction | $3.00–$15.00 |
| Roofing | $10.00–$25.00 |

### Global Context

Similar systems exist worldwide: the UK's Statutory Sick Pay, Germany's Berufsgenossenschaft, and Japan's Workers' Accident Compensation Insurance.