---
title: "workers compensation: Definition and Meaning | NPSA"
description: "Workers compensation is insurance that covers an employer's liability for injuries, disability or death of people in its employment, without regard to fault."
url: https://npsa.preview.multisites.ai/glossary/workers-compensation
publisher: National Portable Storage Association (NPSA)
phone: "(816) 960-6552"
email: info@npsa.org
---

Insurance and risk

# workers compensation

Workers compensation is insurance that covers an employer's liability for injuries, disability or death of people in its employment, without regard to fault. NAIC describes it that way, as set by state or federal workers compensation laws. Most states require employers to carry it, with some exceptions.

## Why it matters

Delivery drivers, yard crews and shop staff face lifting, vehicle and tool hazards. If an employee is hurt on the job, workers compensation pays medical costs and part of lost wages under the state's rules. A common mistake is to treat a subcontractor as exempt without checking. Misclassification can create liability and penalties. Rules differ by state, including who must be covered and how premiums are set. Operators should talk with a licensed agent and their state workers compensation agency. Customers sometimes ask for proof of coverage before a vendor enters a jobsite. This is not insurance or legal advice.

[Read: Insurance for portable storage companies: What coverage to ask about](https://npsa.preview.multisites.ai/guides/insurance-for-portable-storage-companies)

Definition source: [content.naic.org](https://content.naic.org/glossary-insurance-terms)

## Related terms

[### general liability insurance General liability insurance is business coverage for claims of injury or property damage to other people. NAIC defines commercial general liability as flexible and broad commercial liability coverage with two major sub-lines: premises and operations, and products and completed operations. Policies differ in limits and exclusions.](https://npsa.preview.multisites.ai/glossary/general-liability-insurance)[### commercial auto insurance Commercial auto insurance covers motor vehicles that a business owns or uses. NAIC defines it as coverage that protects the insured against financial loss from legal liability for motor vehicle injuries or damage to others' property caused by accidents tied to ownership, maintenance, use or care of a vehicle.](https://npsa.preview.multisites.ai/glossary/commercial-auto-insurance)[### OSHA OSHA is the Occupational Safety and Health Administration, part of the U.S. Department of Labor. Its mission is to make sure workers have safe and healthful working conditions. It sets and enforces workplace standards, and it offers training, outreach, education and assistance. Some states run their own approved programs.](https://npsa.preview.multisites.ai/glossary/osha)[### certificate of insurance A certificate of insurance is a document that summarizes an insurance policy and gives proof of coverage. GEICO says it shows the type of coverage, policy limits, effective dates and who is covered. It does not replace the actual policy or give coverage rights to the requester unless that person is an additional insured.](https://npsa.preview.multisites.ai/glossary/certificate-of-insurance)[### cargo insurance Cargo insurance protects goods that a carrier hauls for others. Progressive Commercial describes motor truck cargo insurance as protecting goods and materials transported by for-hire truckers against events such as fire, collision and theft. It protects both the carrier and the cargo owner.](https://npsa.preview.multisites.ai/glossary/cargo-insurance)

[All 220 terms](https://npsa.preview.multisites.ai/glossary)

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