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 Utah, workers' compensation insurance is mandatory for all employers with one or more employees, with very few exceptions. This insurance provides medical benefits, wage replacement, and death benefits to employees who suffer work-related injuries or illnesses. Utah's Workers' Compensation Act ensures that covered employees who are injured on the job receive these benefits regardless of fault, and in return, employers are generally protected from being sued by employees for workplace injuries due to the exclusive remedy provision. This means that for most cases, the workers' compensation system is the sole method by which an injured employee can receive compensation from their employer, barring lawsuits for work-related injuries unless there is evidence of gross negligence or intentional harm. Nonsubscribers, or employers who fail to carry workers' compensation insurance, do not receive this legal protection and may be exposed to civil lawsuits by injured employees. Additionally, nonsubscribing employers may face penalties from the state.