What is the purpose of "workmen’s compensation" insurance?

The purpose of workmen’s compensation insurance is specifically to cover medical expenses and other related costs for employees who are injured while performing their job duties. This type of insurance helps ensure that workers receive necessary medical care and financial support for lost wages during their recovery period, without needing to prove fault or negligence on the part of the employer. This system creates a safety net for employees, allowing them to recover without facing financial hardship as a result of workplace injuries.

The intent of workmen’s compensation is to provide a no-fault system that benefits both employees and employers. For employers, it helps mitigate the risk of lawsuits resulting from workplace injuries, as employees generally relinquish the right to sue for negligence in exchange for receiving coverage under this insurance.