Who pays the cost of Workers' Compensation insurance?

The cost of Workers' Compensation insurance is primarily borne by employers. This insurance is a critical component of workplace safety and protection, ensuring that employees receive medical care and financial benefits in the event of a work-related injury or illness, while also protecting employers from legal liability stemming from these incidents.

Employers are required by law in most states to provide this insurance, and the premiums are typically calculated based on various factors including the type of industry, the company's claims history, and the number of employees. The intention of this system is to provide a safety net for both parties—employees receive necessary support during challenging times, and employers benefit from reduced exposure to lawsuits related to workplace injury.

By understanding that it is the employers who are responsible for funding Workers' Compensation, one can better appreciate the roles and responsibilities within workplace safety and insurance structures.