Workers’ compensation insurance is a mandatory policy in most states, designed to protect both employers and employees. It covers medical expenses, rehabilitation costs, and lost wages if an employee is injured or becomes ill due to workplace conditions. This insurance also shields employers from lawsuits arising from workplace injuries. For industries like construction or manufacturing, where risks are higher, workers’ compensation is crucial. By providing financial support and ensuring compliance with legal requirements, this policy fosters a safer, more secure work environment and demonstrates an employer's commitment to employee welfare.