Workers' Compensation Insurance is a type of insurance that provides financial support to employees who are injured or become ill due to their job. This insurance covers medical expenses, rehabilitation costs, and a portion of lost wages, ensuring that workers receive necessary care without financial burden. Employers are typically required to carry Workers' Compensation Insurance to protect their employees and themselves from potential lawsuits. In exchange for these benefits, employees usually give up their right to sue their employer for negligence related to the injury or illness, creating a system of mutual protection.