​Workers' compensation is needed for several important reasons

1. Legal Requirement: In many countries, states, or regions, it is a legal requirement for employers to provide workers' compensation insurance. Compliance with this legal mandate is essential to avoid potential fines, penalties, or legal liabilities.
2. Protection for Employees: Workers' compensation ensures that employees who suffer work-related injuries or illnesses are provided with financial support. It covers medical expenses, disability benefits, and sometimes even vocational rehabilitation, offering a safety net for employees and their families.
3. Medical Care: Workers' compensation covers the medical expenses associated with workplace injuries or illnesses. This ensures that employees can receive necessary medical treatment without having to pay for it out of their own pockets.
4. Income Replacement: If an employee is unable to work due to a work-related injury or illness, workers' compensation provides income replacement benefits, such as temporary disability benefits or permanent disability benefits. This financial support helps employees and their families make ends meet during the recovery period.
5. Reduced Employer Liability: By providing workers' compensation, employers can limit their legal liability. In most cases, employees who accept workers' compensation benefits cannot sue their employer for the injury or illness in question, preventing costly and time-consuming legal disputes.
6. Promotion of Workplace Safety: Workers' compensation encourages employers to maintain safe working conditions and implement safety measures. This proactive approach helps prevent workplace accidents and injuries, ultimately reducing the number of claims.
7. Peace of Mind: Employees are more likely to work efficiently and confidently in environments where they know they have protection in case of an accident. Workers' compensation provides peace of mind to employees, which can improve morale and productivity.
8. Economic Stability: Workers' compensation also contributes to the overall economic stability of communities. It helps injured or ill workers maintain their financial stability, reducing the burden on public welfare programs.

In summary, workers' compensation is needed to protect both employers and employees in the event of work-related injuries or illnesses. It provides financial support, legal compliance, and promotes a safer work environment, ultimately benefiting all parties involved.