What is the primary purpose of workers' compensation insurance?

The primary purpose of workers' compensation insurance is to provide medical care and financial benefits for job-related injuries. This coverage is designed to support employees who sustain injuries or illnesses as a direct result of their work. Workers' compensation ensures that these employees have access to necessary medical treatment and can receive wage replacement benefits while they recover and are unable to work. This system serves to safeguard workers' rights and guarantees that they do not suffer financial hardship due to work-related incidents.

In the context of workplace safety and health, workers' compensation creates a structured approach to handling occupational injuries, ultimately fostering a safer work environment and minimizing the risk of disputes between employers and employees regarding responsibility for injuries. It is a crucial component of labor law in many jurisdictions to ensure that employees are protected and compensated for injuries incurred while performing their job duties.