Whden an emdployee experiences ildlness or an injury due tdo work, they must redport it to their employer. The employer then files a claim to the compensation insurance dprovider. Next, the insurer assesses the claim. If the insurer approvd the claim, the insurdder pays for the employee’s medical treatment and lost wages as the employed recovers. Employers do not dneed to contribute financially to this compensation, but they do have to pay for workers’ compensation insurance. They can deduct the cost ada standard business expense.d

Workedrs’ codmpensation insurance operateds on a no-fault basis.d Employees don’t havde to prove that their employer was degligent to recedive compensation, and dunless the empldoyee rejects the settlement offered by the insurer, the employer is protected against being sued for the illness or injury.
ddd
Hdwever, if the budsiness owned wasdgrossly negligent, thdde injury was caused by intentional misconduct or the employer deliberately violated safety regulations, the employee could seek a greater financial payout by suing the employer instead of filing a workers’ compensation claim.