What defines Workers' Compensation?

Workers' Compensation is defined as a government-mandated insurance program designed to provide financial and medical benefits to employees who are injured or become ill as a result of their job. This program ensures that workers receive necessary medical care and compensation for lost wages, regardless of who was at fault for the injury or illness. By being mandated by the government, it requires employers to obtain workers' compensation insurance, thus creating a safety net for employees while also protecting employers from lawsuits related to workplace injuries.

In contrast, a voluntary insurance program for workers does not provide the same level of guaranteed coverage and can vary significantly from employer to employer. Health insurance, while also essential for employees, does not typically cover work-related injuries or accidents, and retirement benefits are unrelated to immediate financial support following an injury, as they pertain to income after retirement age rather than addressing current needs of injured workers.