State workers’ compensation laws require most employers to compensate employees for injuries, illnesses and injuries incurred on the job. Workers’ compensation insurance compensates injured workers or their families for lost wages and survivor benefits, pays medical expenses and
funds rehabilitation programs. Many workers’ compensation policies have a second part, called employer’s liability that protects employers from lawsuits that employees may be entitled to bring against their employers under special, though mostly rare, circumstances. This coverage is usually limited to $1 million, but most umbrella policies can raise this limit.