How does workers' compensation protect employers?

Workers' compensation programs are primarily designed to provide benefits to employees who are injured or become ill due to their work. However, they also offer significant protections to employers. By providing civil immunity in exchange for premiums paid, workers' compensation helps create a no-fault system. This means that employees cannot sue their employer for workplace injuries or illnesses, as long as the employer has complied with the requirements of the workers' compensation system.

This civil immunity protects employers from potentially costly litigation, as employees must instead file a claim through the workers' compensation system to receive benefits for their injuries or illnesses. This arrangement not only limits the employer's liability but also ensures they can focus on running their business without the constant threat of lawsuits from employees over workplace incidents. The premiums paid by employers contribute to a fund that pays out benefits to injured workers, maintaining the integrity of the system while providing necessary protections for both parties involved.