A workers’ compensation is a kind of financial support system and insurance that the employers extend to their employees for covering any injury due to a workplace exposure. It is a statutory obligation and the employers cannot deny to provide lost wages, medical care and rehabilitation to the employees in the event of illness, injury, or death arising in the course of serving the company. It is also called “no fault” obligation that means the employee is entitle to Workers’ comp irrespective of whose fault it is.

In exchange for this, the employees forgive their right to sue the employer for their tort of negligence.