What is the basic purpose of workers compensation insurance?

Workers compensation insurance provides benefits to employees who are injured or become ill in the course of their employment, typically covering medical expenses, a portion of lost wages, rehabilitation, and death benefits. It operates on a no-fault basis — the employee generally receives benefits regardless of who was at fault — and in exchange, workers compensation is usually the employee's exclusive remedy, limiting the employer's exposure to lawsuits over workplace injuries. It is mandatory for most employers, with rules and benefit levels set by each state. Understanding workers compensation's no-fault structure and its 'exclusive remedy' trade-off is standard casualty content.