Workers' compensation is a type of insurance that provides financial benefits to employees who are injured or become ill due to their job. This system helps cover medical expenses, lost wages, and rehabilitation costs, ensuring that workers receive support while they recover. It is designed to protect both employees and employers by providing a structured way to handle workplace injuries. In most cases, workers' compensation is mandatory for employers, meaning they must carry this insurance to protect their employees. The specific rules and benefits can vary by state or country, but the overall goal is to ensure that workers are compensated fairly for work-related injuries or illnesses.