People who are hurt or ill at work are given medical and salary benefits under workers' compensation insurance.
Each state has a different set of requirements for coverage, as well as different medical and pay benefits.
Because it is based on a social contract between management and labour, workers' compensation is seen as a form of social insurance.
In return for acquiring workers' compensation insurance, company owners are shielded from civil lawsuits brought by employees who sustain workplace injuries.
However, each party's advantages are constrained. Businesses obtain workers' compensation insurance.
which is underwritten by insurance firms and, in some jurisdictions, by publicly funded state funds.