Workers’ compensation insurance laws and requirements for employers vary from state to state, but private employers can generally choose whether to carry workers' compensation insurance coverage. A workers' compensation insurance policy provides lost wages and medical benefits to employees injured on the job—and death benefits for the spouse and dependents (children) of a worker who dies in a work-related accident.

Under workers’ compensation laws in many states employers who subscribe to workers’ compensation insurance receive a significant legal protection—they cannot be sued by an injured employee (or the estate of a deceased employee) unless the employer was grossly negligent (more negligent than simple, ordinary negligence).

In other words, if an employer has workers’ compensation insurance, that is usually the exclusive remedy for an injured employee (known as the exclusive remedy provision in the statute), and the insurance coverage bars an injured employee from suing the employer (known as the workers’ compensation bar).

An employer who does not purchase or subscribe to workers’ compensation insurance is known as a nonsubscriber. Workers’ compensation laws are usually located in a state’s statutes.

In Oklahoma, workers' compensation insurance is mandatory for most employers. The Oklahoma Workers' Compensation Code requires that any employer with one or more employees must obtain workers' compensation insurance to provide benefits to employees who suffer work-related injuries or illnesses. This insurance covers medical expenses, rehabilitation costs, and a portion of lost wages for injured workers, as well as death benefits for dependents of workers who die due to a job-related incident. Employers who carry workers' compensation insurance are generally protected from civil lawsuits by injured employees, as the workers' compensation system is intended to be the exclusive remedy for workplace injuries. This means that employees typically cannot sue their employers for work-related injuries if the employer has the appropriate workers' compensation coverage. However, there are exceptions where an employee might be able to sue outside of the workers' compensation system, such as in cases of intentional acts or gross negligence by the employer. Employers who fail to comply with the requirement to carry workers' compensation insurance may face penalties and are exposed to the risk of being sued by injured employees without the limitations normally provided by the workers' compensation system.