What does compulsory Workers Compensation mean for employers?

Compulsory Workers Compensation means that employers are required by law to provide Workers Compensation coverage for their employees. This mandate is established to ensure that workers who sustain injuries or illnesses as a result of their job can receive financial and medical support without having to prove fault. It establishes a no-fault system where benefits are provided regardless of who was responsible for the workplace incident. This requirement protects both employees and employers by offering a structured system for managing workplace injuries, with specific legal guidelines that employers must adhere to.

The other choices reflect incorrect interpretations of compulsory Workers Compensation. Employers cannot opt out of providing coverage, choose different benefits arbitrarily, or determine whether to pay based on employee preferences. These aspects are governed by the applicable Workers Compensation laws that ensure a standardized approach to employee protection in the workplace.