Workers’ comp is a type of business insurance that provides benefits to employees who suffer job-related injuries or illnesses. Each state has certain laws and standards for workers’ compensation. These funds help workers pay for their missed wages, medical treatment, ongoing care, and disability leave. 

Workers’ compensation benefits are paid for by employers of the state. Workers’ comp systems vary state by state, employers usually pay for workers’ compensation in one of three ways: 

1. Premiums to state-run insurance programs
2. Payments to an insurance company
3. Directly to employees

In general, in order to receive workers’ comp benefits employees must:

1. Be an employee
2. The employer must carry workers’ compensation insurance 
3. Have a work-related injury or illness 
4. Meet state deadlines and requirements for reporting and filing a workers’ comp claim

States often have exceptions for workers’ compensation including businesses with few workers, seasonal workers, temporary workers, agricultural workers, and independent contractors. Employers should check their state’s laws for exemptions. 

While procedures vary by state, workers will need to: 

1. Promptly report the injury or illness to their employer within a defined period of time 
2. Usually the employer will give the worker necessary forms to fill out. In some states, there is a form through the state workers’ compensation agency.
3. Once the forms are filled out, an investigation will be conducted to approve or deny the claim. 
4. If the claim is approved, benefits will begin. If the claim is denied, workers can file an appeal.  

It is important to note that processes, deadlines, forms, and requirements vary from state to state. Contact your state’s worker’s compensation agency to confirm what worker’s compensation requirements you are subject to.