Workers’ compensation insurance is a contract between an employer and an insurance company that provides financial protection and benefits to employees who suffer job-related injuries or illnesses.

It typically covers risks such as medical expenses, rehabilitation costs, and a portion of lost wages if an employee is injured while performing their work duties. Workers’ compensation insurance can also provide benefits for long-term disability or ongoing care if the injury prevents the employee from returning to work. In addition to employee benefits, the policy often includes employer liability protection, helping cover legal expenses if an employee files a lawsuit related to a workplace injury. Some policies may also provide death benefits to the family of an employee who dies as a result of a work-related accident. Workers’ compensation insurance is essential for businesses to support employee safety and recovery while protecting the company from significant financial and legal risks associated with workplace injuries.