What does "workman’s compensation insurance" provide to contractors?

Workman’s compensation insurance is a crucial component of risk management for contractors and provides specific benefits that are vital for the welfare of employees. It ensures that employees who are injured on the job receive medical benefits to cover their healthcare costs related to their injuries. Additionally, it provides wage replacement, which helps employees maintain their income during their recovery period. This insurance is mandated in many states, including Nevada, to protect both the worker and the employer.

By having workman’s compensation insurance, contractors fulfill their legal obligations to provide a safe workplace and ensure that employees are taken care of in the event of a work-related injury. This not only helps in maintaining employee morale but also protects the contractor from potential lawsuits that could arise from workplace injuries. On the other hand, the other options do not align with the primary purpose of workman’s compensation insurance; for example, legal protection against contract disputes is covered under general liability insurance, while property damage insurance pertains to damage to physical assets, and life insurance is unrelated to workman’s compensation.