Final answer:
Workers' compensation coverage is a type of insurance that employers are legally required to provide for their employees. It pays benefits to workers who suffer from work-related injuries or illnesses.
Step-by-step explanation:
Workers' compensation coverage is a type of insurance that employers are legally required to provide for their employees. It is designed to provide benefits to workers who suffer from work-related injuries or illnesses. Employers contribute a small percentage of their employees' salaries to a fund, usually managed at the state level, which then pays out benefits to affected employees.
For example, let's say an employee slips and falls at work, resulting in a broken arm. With workers' compensation coverage, the injured employee would be entitled to receive medical treatment and compensation for lost wages due to the injury. This coverage helps protect workers and provides a safety net in case of on-the-job injuries or illnesses.
Workers' compensation coverage is closely related to the concept of employee benefits. It is part of an employer's overall compensation package and contributes to the well-being and financial security of employees.