Workers Compensation or Workers Compensation Insurance Policy is a type of insurance policy that provides medical benefits to the workers that are injured during the course of their employment. Workers Compensation ensures that the employees or workers who are injured or disabled due to accidents at workplace get proper medical care and compensation. By agreeing to this workers give up their right to sue their employers for negligence. This means that they cannot take legal action against their employers if any accidents take place at workplace. Laws regarding workers compensation differ from state to state.