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Workers Compensation Indemnity Payouts

Workers compensation

Workers compensation insurance provides for the cost of medical care and rehabilitation for injured workers. It also provides for lost wages and death benefits for the dependents of persons killed in work-related accidents. Workers compensation systems vary from state to state. There are two components to workers compensation claims costs: cash payments for lost time (which are usually linked to a state’s average weekly wage), known as indemnity costs, and payments for medical care.

Workers Compensation Benefits, Coverage And Costs, 2022

2022 Percent change,
2018-2022
Covered workers (000) 146,312 2.6%
Covered wages ($ billions) $10,257 25.4
Workers compensation benefits paid ($ billions) 61.7 -1.9
     Medical benefits 29.0 -7.8
     Cash benefits 32.7 4.1
Employer costs for workers compensation ($ billions) 103.0 1.4

Source: Workers Compensation: Benefits, Coverage, and Costs, November 2024, National Academy of Social Insurance.

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