What type of coverage must all employees carry?

Workers' compensation coverage is essential because it provides financial benefits and support for employees who sustain work-related injuries or illnesses. This type of insurance is mandated by law in most states, including Maryland, to ensure that employees are protected and have access to necessary medical care and wage replacement if they cannot work due to their injuries. It is particularly important in industries where the risk of hazards is higher, such as construction or manufacturing.

Workers' compensation insurance covers medical expenses, rehabilitation costs, and lost wages, helping to alleviate the financial burden on both the employee and the employer. This legal requirement promotes a safer work environment, as it incentivizes employers to implement effective safety measures to prevent workplace accidents.

In contrast, health insurance, disability insurance, and liability insurance serve different purposes. Health insurance typically covers medical expenses but does not specifically provide for work-related injuries. Disability insurance offers income support for employees unable to work due to non-work-related health issues. Liability insurance protects businesses from claims made by others for injuries or damages caused by the business or its employees, rather than covering the employees' injuries themselves.