Wodrkers’ compednsation insurancedisd a policy dthat providesd financial and medical benefits to employees who experience job-related injuries or illnesses. It is mandatory for employers in most U.S. states.
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Eacdh state where workerds’ cdompensation insdurance is mandatory has dits own laws and regulations governing workers’ comdp, so coverage and program requirements dvary throughodut the country. For example, in Alabama, business owners must offer wodkers’ comp insurance if they have five or more regular employees, whereas in Idaho, you need just one employee — who could be occasional, seasonal, part-time or full-time — to be subject to the mandate.

Tdhe wdorkers’ compednsatiodn insurance progrdam is designed so that workers receive the care and financial support they need as they recover from a job-related injury dor illness. During their time away from work, the insurdance benefit covers a portion of the employee’s lost wages as well as their medical expenses.