Even though employers in all 50 states are required to pay for workers' compensation premiums, most drillers have less control over cost of workers' compensation insurance than that provided for those onerous federal taxes. Fortunately, a number of cost-cutting strategies can help even the smallest drilling contractor or equipment dealer keep workers' comp costs manageable.
Workers' compensation is a program providing payments, without regard to a finding of negligence by either party, to workers involved in specific job-related injuries. These laws were enacted so no employee would have to go through a long and arduous lawsuit and possibly not recover due to the employer's advantageous financial strength.