What does workers compensation insurance cover?

Workers' compensation insurance is specifically designed to provide coverage for employees who are injured while performing their job duties. This type of insurance ensures that workers receive appropriate medical treatment for their injuries and may also offer compensation for lost wages if they are unable to work as a result of their injuries. The primary purpose of workers' compensation is to protect both the employee and the employer by providing a system for addressing work-related injuries that minimizes litigation and ensures prompt medical care and compensation.

The nature of workers’ compensation is focused solely on work-related incidents, which is why it does not encompass illnesses unrelated to job functions, such as general sickness or conditions affecting employees outside their work environment. Additionally, it does not extend to health insurance for family members or provide unemployment benefits for workers who have lost their jobs, as those aspects fall under other forms of insurance and assistance programs. Therefore, the coverage offered by workers' compensation is narrowly tailored to injuries and conditions that arise directly from employment activities.