Workers' compensation or workers' comp insurance provides wage replacement and medical benefits to employees injured while working for you. It provides care for an employee in need and protects you and your business from being sued by the injured employee. So, it’s a good thing to have.

Plans differ by jurisdiction so just any policy won’t do. Provisions can include weekly payments in place of wages (functioning in this case as a form of disability insurance), compensation for economic loss (past and future), reimbursement or payment of medical and like expenses (functioning in this case as a form of health insurance), and payments to dependents of a worker killed while doing their job.