Workers comp insurance policies differ in purpose, legal requirements, and employer coverage.
Workers compensation insurance differs from other types of insurance in several ways:
- Purpose: It specifically covers work-related injuries or illnesses, ensuring medical treatment, wage replacement, and rehabilitation for employees, unlike other types of insurance which may focus on property damage, liability, or personal health.
- Legal Requirement: Workers comp is mandated by law for most employers, while other insurance types (e.g., property or health) are typically optional.
- Employer Coverage: It protects employers from legal liability in the event of a workplace injury, unlike general liability or health insurance.