What is Workers' Compensation?

Workers' compensation insurance is insurance purchased by your employer to cover employees if they are injured at work.  Just as you must have car insurance if you wish to actually operate your car in the State of Oregon, employers must have workers' compensation insurance if they are going to have employees.  Just as your car insurance premium is dependent  upon how many claims you have and the costs of those claims, as well as the value of your car and the number of miles you drive (the risk); so is the cost for workers’ compensation insurance dependent upon the number of claims an employer has, the cost of those claims, the size of their payroll, and the nature (risk) of the work activity. 

Many workers confuse the workers’ compensation contribution taken from their paycheck as payment for their workers’ compensation insurance coverage.  This is not correct.  The amount taken out of a workers’ pay goes to a separate State fund which is primarily used to provide incentives for employers to hire injured workers.

Workers’ compensation coverage is “no fault” insurance.  It is designed to cover workers who are injured on the job regardless of negligence -- be it negligence of the worker themselves, their employer, or a co-worker.

Generally, workers’ compensation is an “exclusive” remedy.  This means it is the only remedy for an on the job injury.  In most circumstances an injured worker cannot bring a civil suit for damages against his employer or co-worker.

DISCLAIMER

THE INFORMATION ON THIS WEBSITE IS FOR YOUR INFORMATION ONLY.  IT DOES NOT CONTAIN ALL INFORMATION REGARDING RULES AND REGULATIONS ON WORKERS’ COMPENSATION.  FOR MORE INFORMATION, PLEASE CONTACT THE WORKERS’ COMPENSATION DIVISION, OR A QUALIFIED ATTORNEY WHO SPECIALIZES IN WORKERS’ COMPENSATION.