Definition
Workers' Compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of their employment. It is a no-fault system, meaning benefits are paid regardless of who was at fault for the injury, simplifying the claims process. This coverage is crucial because it protects both the employee from financial hardship due to injury and the employer from costly lawsuits. For instance, if a construction worker suffers a back injury while lifting heavy materials, Workers' Compensation would cover their medical bills and lost wages. It is distinct from general liability insurance, which covers damages to third parties, not employee injuries. This topic is relevant for project management certifications like PMP and CAPM, particularly in risk management and stakeholder engagement domains.