This type of insurance is purchased by the employers of the companies to the employees of that company for their benefit. This insurance is mostly used by the big company because the company can not provide treatment to each and every employees of the company when there is accident occur so that company purchases insurance for them. Like general liability and medical payment liability insurance, it pays for medical treatment required by employees of a company according to a state-regulated schedule of benefits.

This insurance can be purchased from general insurance who charge employers a premium based on their safety records. The object is to prevent employees from the need to sue their employers if they are injured and to compensate workers for losses from accidents on the job. Some states provide for wage loss workers' compensation, which eliminates specific benefits but pays workers any salary or wages lost from injuries. Such insurance tends to reduce the premium.