Definition of no Fault
No-Fault, in the broadest sense, refers to any type of insurance contract in which the insured is indemnified from losses by their own insurance company, no matter whose fault the incident is that generates losses. In terms of workers' compensation, no-fault refers to the type of insurance system that workers' compensation is. Workers' compensation is a no-fault, business kind of insurance. This means that workers' compensation does not take fault into consideration. Because of this, no-fault is one of the hallmark aspects and elements of workers' compensation.
What no-fault means to a worker is that an injured worker is entitled to receive workers' compensation benefits for a work-related injury or illness regardless of whose fault the injury or illness was. Although there are exceptions, when it comes to workers' compensation, it does not matter whether a work-related injury or illness was caused by a worker's fault, their employer's fault or the negligence of a co-worker. However, in exchange for receiving no-fault workers' compensation benefits; such as lost wages, medical care and occupational rehabilitation, an injured worker gives up their right to file a personal injury claim against their employer, which they may or may not have won. This also protects employers against unmanageable liability.