Workers' compensation insurance is a type of insurance that provides benefits to employees who are injured or become ill due to their work. It is designed to protect both employee and employer in the event of an accident or injury that occurs on the job. Workers' compensation insurance is mandatory in most states in the United States, and specific requirements vary by state.

The insurance covers employees for medical expenses incurred as a result of their work-related injury or illness, as well as lost wages and rehabilitation costs. In the event of disability or death, workers' compensation insurance also provides benefits to the employee's family or dependents.

In the insurance industry, workers' compensation insurance is typically sold to businesses or organizations that employ workers, such as construction companies, manufacturing plants, and hospitals. Insurance companies that offer workers' compensation insurance typically employ risk assessment tools to determine the likelihood of accidents occurring on the job and the potential costs of those accidents. Premiums for workers' compensation insurance are often based on these estimated expenses.

Overall, workers' compensation insurance is an important tool for both employees and employers. It provides employees with financial protection in the event of an injury or illness, and it helps employers avoid potentially costly lawsuits related to workplace accidents.