What is the primary purpose of workers' compensation insurance?

The primary purpose of workers' compensation insurance is to offer financial support to injured workers. This system ensures that employees who are injured or become ill as a result of their job receive compensation for medical expenses, lost wages, and rehabilitation costs without having to prove fault or negligence. Workers' compensation acts as a safety net, allowing employees to focus on recovery without the added stress of financial instability caused by their injury.

This coverage is designed to provide benefits in a timely manner, helping to alleviate the financial burden that can result from workplace accidents or occupational diseases. It serves to protect the livelihood of workers and their families, ensuring they have access to necessary medical care and support while they recover.

While protecting employers from lawsuits can be an ancillary benefit of the system, the core focus remains on providing the necessary support to employees who face the challenges of recovery following a work-related injury. Other options, such as universal health coverage or productivity enhancement, do not align with the fundamental purpose of the workers' compensation system.