Which insurance protects contractors from workplace injuries?

Workers Compensation Insurance is specifically designed to protect contractors and their employees from workplace injuries. This type of insurance provides coverage for medical costs and a portion of lost wages for employees who are injured on the job, regardless of whose fault the injury was. It serves several key functions: it ensures that employees receive prompt medical attention, it provides wage replacement, and it protects employers from potential lawsuits that could arise from workplace injuries.

In many jurisdictions, workers' compensation insurance is mandatory for businesses with employees, as it contributes to a safer work environment and provides financial security for workers. By having this coverage, contractors can comply with legal obligations while ensuring their workforce is adequately protected.

Other types of insurance, such as liability, property, and health insurance, serve different purposes. Liability insurance typically covers damages resulting from third-party claims of injury or property damage due to the contractor's activities, rather than covering injuries to the contractor's own employees. Property insurance protects physical assets against damage or loss but does not address employee injuries. Health insurance covers medical expenses for individuals but does not specifically address workplace injuries as comprehensively as workers compensation insurance does.