Here in Louisiana, the Office of Workers' Compensation is the state agency that manages claims from workers who are injured or made ill while at their jobs. What is important to know is that the OWC does not actually pay out claims to injured workers. Rather, every Louisiana employer is required to either become self-insured or maintain workers' compensation insurance.
The general concept of the mandatory insurance requirement is to give employers an incentive to observe better worker safety practices and policies. Put simply, the employer's costs to obtain workers' compensation insurance generally increases as workplace accidents and illnesses increase.