Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence.

• Workers' comp does pay hospital and medical expenses that are necessary to diagnose and treat your injury. But it also provides disability payments while you are unable to work (typically, about two-thirds of your regular salary), and may pay for rehabilitation, retraining, and other benefits as well.

Workers' comp insurance provides five basic benefits: Medical care:

Paid for by your employer to help you recover from an injury or illness caused by work. Temporary disability benefits: Payments if you lose wages because your injury prevents you from doing your usual job while recovering.