Employers always try to provide the safest working environment for their staff. But even the most conscientious businesses are not immune to the occasional workplace accident. With workers’ compensation insurance, businesses can provide benefits to injured or sick employees while protecting themselves from costly lawsuits.

Unlike other forms of business insurance, workers’ compensation is required by law. You must provide coverage for all full- and part-time employees or face federal and state penalties. Each state develops its own regulations to ensure that businesses provide compensation and health benefits to employees who are hurt or become ill on the job.

Workers’ compensation insurance is also a no-fault policy – your employees can usually receive benefits for a workplace injury even if you weren’t directly responsible.

In turn, the employee receives compensation but can’t sue your company for negligence.

Businesses typically grumble about workers’ compensation requirements because of the cost, particularly in high-risk industries. As businesses move toward safer work environments, however, workplace injury rates and insurance premiums subside. A recent Bureau of Labor Statistics study showed that improving work conditions and standards helped reduce workplace injuries and illnesses from 7.1 incidents per 100 employees in 1997 to 4.4 in 2006.

Use this BuyerZone Workers’ Compensation Buyer’s Guide to learn how the system works, how to select the right insurance provider, and methods to reduce costs. After you read our expert advice, submit a free request for quote to be matched to workers’ compensation providers near you.