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 West Virginia (WV), workers' compensation insurance is mandatory for all employers, with very few exceptions. This means that private employers in WV do not have the option to choose whether to carry workers' compensation insurance; they are required by law to have it. The workers' compensation system provides benefits to employees who suffer work-related injuries or illnesses, including coverage for medical expenses, rehabilitation costs, and lost wages. Additionally, it provides death benefits to the dependents of workers who die as a result of job-related injuries. In WV, the workers' compensation insurance acts as an exclusive remedy, which means that in most cases, employees cannot sue their employers for work-related injuries if the employer has the proper workers' compensation insurance in place. This exclusive remedy provision is designed to protect both employees, by ensuring they receive prompt and fair compensation, and employers, by limiting their liability. Employers who fail to provide workers' compensation insurance may face severe penalties, including fines and the possibility of being sued by injured employees without the limitations normally provided by the workers' compensation system.