Who is responsible for paying workers' compensation premiums?

The employer is responsible for paying workers' compensation premiums because it is a statutory requirement designed to protect employees who are injured or become ill due to work-related activities. The workers' compensation system operates under the principle that employers should bear the financial responsibility for workplace injuries, ensuring that employees receive necessary medical treatment and compensation for lost wages without having to prove fault. This arrangement helps facilitate a safer work environment as employers are incentivized to maintain safe working conditions to reduce their potential costs.

Employees do not pay these premiums directly, thus allowing them to receive benefits when needed without any financial burden regarding the premium payments. Insurers provide the coverage and process claims but are not responsible for payment; rather, they are compensated through the premiums paid by employers. The state government may regulate the system, but it is ultimately the employer who is accountable for the premium costs.