Employees Compensation Insurance

In Plain Terms

Employee compensation insurance (often called work injury compensation or workers’ compensation) is a no-fault statutory policy that employers must buy to cover workers for work-related injuries, illnesses, or death, paying out medical costs, lost wages, and disability lump sums without requiring a lawsuit.

01
Employment

You employ eligible workers, including part-time staff.
02
Incident

A work-related injury, illness or death occurs.
03
No-fault benefit

Benefits are paid without proving employer negligence.
04
Common law

A separate negligence claim may follow, without a cap.

Key Coverages

Medical expenses: Hospital bills, treatment, and medication costs.
Medical leave wages: Reimbursement for income lost while on medical leave.
Lump sum payouts: Compensation for permanent incapacity or accidental death.
No-fault system: Workers receive benefits without needing to prove employer negligence.
Common law liability: Injured employees or legal representatives of a deceased employee can sue the employer for negligence under common law. There is no upper limit for the amount which could be awarded by the court.

Employer responsibilities

Mandatory Purchase Required by law for all eligible workers, including part-time employees. It will breach the local law if an employer does not purchase any Employees’ Compensation Insurance.
Liability Protection Shields businesses from costly civil lawsuits related to workplace accidents.
Immediate Care Employers must support injured staff and process claims through official regulatory channels or insurers.