While payments are usually modest, workers' compensation insurance typically covers benefits for survivors of employees killed on the job and indemnity for permanent injuries incurred at work, according to FindLaw. Other expenses often covered include medical care for the injury or illness, costs for retraining a worker and salary relief.
Wage replacement is frequently capped at a certain point so that payments cannot go over that amount, FindLaw notes. Payment is ordinarily two-thirds of an employee's regular salary and is not taxed. Once several days of work are missed due to a specific on-the-job injury or illness, the eligibility for wage replacement begins.
Workers' compensation covers incidental accidents and injuries and illnesses that occur as a result of repetitious tasks related to a job, states FindLaw. Examples include diseases such as lung cancer that result from exposure to toxins at the workplace as a normal part of the job. Usually covered injuries include those that occur during lunch breaks and company-sponsored functions and those that result from faulty equipment, such as a broken chair leg.
Rights vary state by state and according to industry, explains FindLaw. Few states cover injuries and illnesses caused by goofing around, and it is unlikely that an employee will qualify for benefits if she was intoxicated at the time or deliberately inflicting pain upon herself.