What is the purpose of workers' compensation insurance?

The purpose of workers' compensation insurance is primarily to provide income replacement and medical care for injured workers. This system is designed to ensure that employees who sustain work-related injuries or illnesses receive necessary medical treatment and financial support during their recovery. By covering medical expenses and offering wage loss benefits, workers' compensation aims to assist injured employees in their rehabilitation process and facilitate their return to the workplace.

This insurance also establishes a no-fault system, meaning that injured workers can receive benefits without having to prove that their employer was at fault for their injury. This is essential for providing timely assistance to workers in need and allows them to focus on healing rather than engaging in potentially lengthy legal battles.

While protecting employees from job loss, preventing workplace accidents, and decreasing insurance premiums can be related objectives within occupational health policies, they are not the primary purpose of workers' compensation insurance itself. Instead, the focus is firmly on ensuring that injured workers receive the appropriate medical and financial support following an incident at work.