What is the primary purpose of workers' compensation insurance?

The primary purpose of workers' compensation insurance is to provide financial support for injured workers. This system is designed to assure that employees who are injured or become ill due to their work-related duties receive appropriate medical care and financial compensation for lost wages during their recovery. The intention is to facilitate a quicker return to work while ensuring that workers do not face undue financial hardship as a result of a workplace incident.

Workers' compensation serves as a safety net that protects employees, offering benefits such as medical expenses coverage and wage replacement, thereby emphasizing worker welfare. This approach not only aids in the rehabilitation of injured personnel but also helps in creating a safer work environment as both employers and employees have fewer disputes regarding liabilities and compensation. By effectively addressing the needs of injured workers, this system contributes to the overall stability and support of the workforce.