Editing Workers' compensation (section)

{{short description|Form of insurance}}
{{Use dmy dates|date=August 2021}}
{{Use British English|date=August 2016}}
[[File:Pipe installation 2.jpg|thumb|right|240px|Dangerous tasks are common in the construction workplace.]]
'''Workers' compensation''' or '''workers' comp''' is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the [[tort]] of [[negligence]].

The trade-off between assured, limited coverage and lack of recourse outside the worker compensation system is known as "the compensation bargain.” One of the problems that the compensation bargain solved is the problem of employers becoming insolvent as a result of high damage awards. The system of collective liability was created to prevent that and thus to ensure security of compensation to the workers.

While plans differ among jurisdictions, [[Provision (contracting)|provision]] can be made for weekly payments in place of wages (functioning in this case as a form of [[disability insurance]]), compensation for economic loss (past and future), reimbursement or payment of medical and like expenses (functioning in this case as a form of [[health insurance]]), and benefits payable to the dependents of workers killed during employment.

General damage for [[pain and suffering]] and [[punitive damages]] for employer negligence are generally not available in workers' compensation plans, and negligence is generally not an issue in the case.