Indiana law mandates that most employers secure insurance coverage to protect employees in case of work-related injuries or illnesses. This system provides medical care and wage replacement benefits to eligible employees, shielding them from the financial burdens of unexpected medical expenses and lost income. For example, an employee injured while operating machinery on a factory floor would likely be entitled to benefits covering medical treatment and a portion of their lost wages during recovery.
This legally mandated system offers significant advantages for both employees and businesses. By providing a safety net for injured workers, it promotes a more stable and productive workforce. It also protects employers from potentially crippling lawsuits arising from workplace incidents, fostering a more secure business environment. Historically, such systems arose from the need to address the increasing number of workplace accidents during industrialization, providing a more efficient and equitable way to handle the resulting injuries and financial burdens.
