Workers' compensation insurance covers expenses connected to a work-related injury or illness suffered by an employee. Workers' compensation coverage extends to the following: 1.Medical expenses - This includes emergency room visits, prescription medicine, cost of surgeries, medical treatment, and other medical benefits. 2.Lost wages for missed work - Somewhat like unemployment benefits, this coverage replaces the income they should be receiving if everything was normal and they were not injured on the job. 3.Ongoing care - There are work-related injuries that cannot be healed in a single visit. For a job-related injury that requires rehabilitation and physical therapy, workers' comp plans extend to these additional treatments. 4.Funeral costs - If an employee loses their life while they are on the job, the workers' compensation law can help cover the costs of their funeral and provide benefits for the family of the deceased. 5.Illness - For some industries, working conditions get the employee exposed to allergens or harmful chemicals that lead to illness.