Worker's compensation insurance helps an employee who has been injured on the job. It often provides medical care and some part of the employee's regular salary, states NOLO's Disability Secrets website.
Worker's compensation insurance is provided to an injured employee to prevent that employee from suing the company, should he be injured on the job while performing regular job-related duties. Things covered under the worker's compensation law include illness or accidents, occupational disease or traumatic injuries.
Generally, a worker's compensation claim will be denied if the employee was working under the influence of drugs or alcohol, was taking part in illegal activity while on the job, or is the victim of self-inflicted injuries, notes NOLO.