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 Oregon, workers' compensation insurance is mandatory for all employers, with very few exceptions. This means that private employers do not have the option to choose whether to carry workers' compensation insurance coverage; they are required by law to have it. The insurance provides benefits for lost wages, medical treatment for work-related injuries or illnesses, and death benefits for the dependents of a worker who dies as a result of a job-related incident. Oregon's workers' compensation system operates under the exclusive remedy provision, which generally prevents employees from suing their employers for work-related injuries if the employer has the appropriate workers' compensation insurance. This system is designed to protect both employees, by ensuring they receive prompt and fair compensation for injuries, and employers, by limiting their liability. Employers who fail to provide workers' compensation insurance (nonsubscribers) may face severe penalties, including fines and potential lawsuits from injured employees.