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What does workers’ compensation cover?

Workers’ compensation

The United States government offers a variety of benefits including Office of Workers’ Compensation Program (OWCP), commonly referred to as workers’ compensation or “workers’ comp” for short. This program is for federal and private employees who suffer an injury or disease while at work or due to their working conditions. It is not a requirement for all businesses, but is a notable benefit. Workers’ compensation includes:


  • Wage replacement benefits for time not worked
  • Medical treatment coverage for injuries or illnesses
  • Vocational rehabilitation (if needed)
  • A variety of other benefits depending on the case


If a person or group of workers are injured on the job, they will report the incident to their state workers’ compensation board to begin the process. From there, workers will work with the board to determine what benefits will be administered and what costs will be covered. Likely, there is a doctor’s appointment or two before getting in touch with the board so there can be retroactive compensation accordingly. Most companies have a process in place to manage these situations to best get people back on their feet.


Use the government website to find each state’s workers compensation committee contact information: 

What is covered by workers compensation?

As previously mentioned, workers’ compensation covers any injury or illness incurred by an employee while on the job. Workers’ compensation does not cover commuting to or from work. However, injuries that happen in the workplace or on workplace property can give rise to workers’ compensation, depending on the activity.


For example, if a group of employees walks together to get lunch and some incur injuries, that likely won’t be covered. Or, if there’s a group gathering during company hours but not related to work, that will be up for debate on whether there will be benefit coverage. It all depends on the incident and the policy a company has in place. Of course it’s impossible to predict any and all injuries or illnesses that could pop up during the lifetime of a company, but it’s important to be prepared once something does happen.

Who needs workers compensation?

At Nickerson Insurance Systems, Inc. we say that the general rule of thumb is that any company with workers needs to have workers’ compensation. Rather than getting an owner and company entangled in legal fees and trials, workers’ compensation is put into place to help protect both the employer and the employees. 


Again, workers’ compensation insurance plans differ greatly from company to company, but it is important for all companies to seek the best plan for everyone involved. That’s where we come in.

Want to know more about worker’s compensation? Let Nickerson Insurance Systems, Inc. answer your questions

If you or your business are looking to include workers’ compensation, we are here to help. Depending on the type of work your employees perform and the conditions of the working environment, workers’ compensation can vary greatly from company to company. So, let one of our agents walk you through the process.

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