What is the primary purpose of workers' compensation insurance?

The primary purpose of workers' compensation insurance is to cover medical expenses and lost wages for employees who are injured while performing their job duties. This insurance is designed to provide financial support to workers who may be unable to work due to a workplace injury or illness. It ensures that employees receive the necessary medical care and compensation for a portion of their lost income, thus helping them get back on their feet without undue financial burden following an accident.

This form of insurance creates a system of no-fault benefits, meaning that employees are entitled to compensation regardless of who was at fault for the injury. It also helps protect employers from being sued for workplace injuries, as workers' compensation typically serves as the exclusive remedy for injured employees. Thus, the overarching goal is to provide a safety net for both employees and employers in the event of workplace incidents.