Workers' compensation is a type of insurance that provides wage replacement and medical benefits to employees who have been injured during 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.
This type of insurance typically covers payment for hospital and medical expenses that are necessary to diagnose and treat an injury. Workers' compensation also provides disability payments while an employee is unable to work (usually about two-thirds of the regular salary), and may pay for rehabilitation, retraining and other benefits.
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