Workers’ Comp is an important safety net of protection which benefits both the worker who risks injury on the job and the employer who would otherwise face potentially crippling liability for workplace injuries. The Workers’ Comp insurance system is intended to streamline claims, and take these issues out of the courts and into a no-fault context.
This helps workers get the cash flow they need to replace lost incomes right away. At the same time it helps employers avoid a lawsuit which could bankrupt them, arising out of the serious injury or death of an employee due to a workplace accident.
That said, some employers may actually be paying more than necessary for Workers’ Compensation premiums because they don’t understand how premiums are set, and what they can do to help improve their ratings to lower premiums.