What is the main purpose of workman's compensation insurance?

The primary purpose of worker's compensation insurance is to cover employees who suffer work-related injuries or illnesses. This coverage ensures that employees receive the necessary medical care and compensation for lost wages due to their inability to work as a result of an injury incurred in the course of their employment. It serves to provide financial support and helps alleviate the financial burden that a work-related injury can impose, ensuring that employees are taken care of and can focus on recovery without the stress of financial issues.

This system is designed to benefit both employees and employers; while it provides essential support for employees, it also limits the liability of employers concerning workplace injuries, which is an essential aspect of maintaining a productive and safe work environment. Thus, understanding workers' compensation insurance is crucial for both management and human resources personnel in order to comply with legal obligations and foster a safe workplace culture.