Workers’ compensation insurance, often a critical component for businesses, provides coverage for employees who sustain injuries or illnesses directly related to their employment. This type of insurance typically covers medical expenses, lost wages, and rehabilitation costs. For example, if an employee slips and falls at work, sustaining a broken leg, workers’ compensation would likely cover the medical bills associated with treating the fracture, as well as a portion of the employee’s lost income while they are unable to work.
The importance of this insurance stems from its dual benefit: protecting both the employee and the employer. It ensures that employees receive necessary medical care and financial support when they are injured on the job, regardless of fault. Simultaneously, it shields employers from potentially costly lawsuits that could arise from workplace accidents. Historically, workers’ compensation laws were enacted to address the inadequacies of common law remedies for workplace injuries, providing a more streamlined and predictable system for compensation.
