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Workers' compensation insurance : Workers' compensation insurance Provides medical and wage benefits to people who are injured or become ill on the job. Every state requires insurance, and wages and health benefits vary from state to state. Workers' compensation is considered social insurance because it is based on a social contract between management and workers, in which business owners can protect employees injured on the job from civil lawsuits by purchasing workers' compensation insurance. But the interests of all parties have their limits. Workers' compensation insurance is purchased by businesses and underwritten by insurance companies and, in some states, publicly supported government funds.

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