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 Virginia, workers' compensation insurance is mandatory for most employers. The Virginia Workers' Compensation Act requires that any employer with three or more employees, whether full-time or part-time, must carry workers' compensation insurance. This insurance provides medical benefits, wage replacement, and death benefits to employees who are injured or killed in the course of employment. Employers who comply with these regulations are generally protected by the exclusive remedy provision, meaning they cannot be sued for workplace injuries or deaths except in cases of gross negligence. However, if an employer unlawfully fails to have workers' compensation insurance, they can be subject to fines, penalties, and lawsuits from injured employees. Noncompliant employers lose the protections of the exclusive remedy provision and may face civil claims for damages caused by workplace injuries.