What does the term "workman’s compensation" mean?

The term "workman’s compensation" specifically refers to a form of insurance designed to provide wage replacement and medical benefits to employees who suffer injuries or illnesses as a direct result of their work-related activities. This coverage is particularly essential in construction and other high-risk industries, where the likelihood of accidents is increased.

When an employee is injured on the job, workman’s compensation ensures that they receive financial support for medical expenses and a portion of their lost wages, allowing them to focus on recovery without the added stress of financial concerns. This system is beneficial for both employees, who gain a safety net, and employers, who are protected from potential lawsuits related to workplace injuries.

Other options explain concepts that do not align with the primary function of workman’s compensation. For example, providing bonuses or health insurance to all employees does not meet the specific criteria for compensation related to work injuries. Moreover, workman’s compensation is not solely defined as a legal requirement for construction companies, although many jurisdictions require it as a part of business operations, emphasizing its critical role in workplace safety and employee support.