The purpose of workers' compensation insurance is to provide financial assistance to workers who suffer an injury or illness due to work-related activities. This is the standard in Pennsylvania and all states throughout the country. According to Pennsylvania law, workers' compensation is mandatory for every employer who employs even as few as one employee who could suffer injuries either at the workplace, anywhere within the state, or in some cases, outside the state while working.
Employers may buy workers' compensation liability insurance from multiple places. First, employers may buy workers' compensation insurance from the Pennsylvania State Workers' Insurance fund. They may also buy it from an insurance company licensed in Pennsylvania. Finally, after obtaining an approval from Pennsylvania Department of Labor and Industry they could opt for self-insurance, either individually or as a group.