What does 'workman’s compensation insurance' cover?

Workman’s compensation insurance is specifically designed to cover medical expenses and lost wages for employees who sustain injuries while performing their job duties. This type of insurance provides financial assistance to employees who are injured on the job, ensuring that they can receive necessary medical treatment without the burden of high out-of-pocket costs. Additionally, it compensates for a portion of their lost wages during their recovery period, allowing them to maintain some financial stability.

Employers are required by law in many jurisdictions to carry workman’s compensation insurance to protect both their employees and themselves from potential lawsuits related to workplace injuries. This insurance fosters a safer work environment and facilitates a prompt and fair resolution to wage loss and medical expenses due to workplace injuries.