Which type of insurance is required by law for workers in most states?

Workers Compensation Insurance is mandated by law in most states to provide financial and medical benefits to employees who are injured or become ill as a direct result of their work. The purpose of this insurance is to ensure that workers receive the necessary support during their recovery without the need for litigation against their employer. If an employee is injured on the job, Workers Compensation Insurance covers medical expenses and lost wages, protecting both the worker and the employer from the financial repercussions of workplace injuries or illnesses.

In contrast, while health insurance and unemployment insurance are also important, they are not universally required by law for all workers. Health insurance may be offered by employers but is often not mandated, and unemployment insurance is typically funded through state regulations but does not apply to all workers uniformly. General liability insurance is commonly required for businesses to protect against claims of bodily injury or property damage, but it does not relate directly to the employee-employer relationship regarding workplace injuries. Thus, Workers Compensation Insurance stands out as a legal requirement specifically designed to address worker safety and health in the workplace.