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Workers Compensation
Workers' compensation is a form of insurance to pay for medical care and compensation for employees who are injured while on the job, in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence. The tradeoff between assured, limited coverage and lack of recourse outside the workers compensation system is known as "the compensation bargain". While plans differ between jurisdictions, provision can be made for weekly payments in place of wages reimbursement or payment of medical and like expenses and benefits payable to the dependents of workers killed during employment. General damages for pain and suffering, and punitive damages for employer negligence, are generally not available in worker compensation plans.
Insurance
Promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company.