Workers compensation laws were created to ensure that employees who are injured on the job are provided with fixed monetary awards. This eliminates the need for litigation and creates an easier process for the employee and can also helps control the financial risks for employers .

Workers compensation insurance helps companies pay these benefits to injured employees. It is designed specifically for injuries sustained on the job. Most states require employers to carry at least some form of workers comp coverage. Louisiana does require workers comp insurance.

Coverage on a workers comp policy covers workers injured on the job, whether that means on the premises or in an accident while elsewhere on business, or a work-related illness.