Basically a form of employment insurance, workers' compensation systems were devised as a way of protecting employees who sustain illnesses or injuries in the course of performing their jobs. In most instances, employers are responsible for contracting with insurance companies who specialized in workers' compensation coverage. Then, the employers are responsible for paying the premiums on this policy, the payments for which are often subsidized at least in part with deductions that are automatically removed from employees' paychecks. After a worker sustains an on-the-job illness or injury, the insurance coverage kicks in to supply the injured employee with temporary disability payments and medical coverage. However, the specific benefits that are covered by your employers' workers' compensation insurance may vary according to the size of the company and the applicable laws in your state. Check with your employer to learn more about the specific policy that covers your place of employment.