Advantages and Disadvantages of Worker’s Compensation


In all states, employers with more than several workers are obligated to maintain workers' compensation insurance through a company or be self-insured for the benefit of their employees (not independent contractors). The advantage to employers is that they cannot be sued in court for injuries sustained by workers during the course of employment even if an accident was caused by an employer's fault (negligence). Lawyers representing injured workers typically prefer that their clients not receive workers' compensation benefits because the potential of being awarded money for damages in a personal injury lawsuit is vastly greater.





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