Mandatory insurance refers to types of insurance that individuals or businesses are legally required to have. This can include policies like auto insurance for drivers, which protects against financial loss from accidents, or health insurance that ensures access to medical care. The goal of mandatory insurance is to provide a safety net for individuals and society, reducing the financial burden of unexpected events. Governments often establish mandatory insurance requirements to promote public welfare and protect citizens. For example, workers' compensation insurance is required for employers to cover employees injured on the job. By enforcing these laws, authorities aim to ensure that people have necessary coverage and can manage risks effectively.