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 Rhode Island, workers' compensation insurance is mandatory for all employers, with very few exceptions. This insurance provides benefits to employees who suffer work-related injuries or illnesses, including coverage for medical expenses, lost wages, and rehabilitation costs. Death benefits are also available for the dependents of workers who die as a result of job-related injuries. Rhode Island law establishes that workers' compensation is typically the exclusive remedy for injured employees, meaning that they cannot sue their employer for injuries covered by workers' compensation. However, there are exceptions where an employee can sue outside of the workers' compensation system, such as in cases of intentional acts or gross negligence by the employer. Employers in Rhode Island who fail to carry workers' compensation insurance may face penalties, including fines and possible imprisonment, and they lose the protection of the exclusive remedy provision, opening themselves up to civil lawsuits from injured employees.