A workers' compensation contract is typically between which two parties?

In a workers' compensation contract, the agreement is typically established between the insurance company and the employer. This contract ensures that the employer provides coverage for employees who sustain work-related injuries or illnesses. The insurance company agrees to compensate injured workers according to the terms of the policy, which helps protect the employer from lawsuits resulting from workplace injuries.

This relationship is essential for establishing the responsibilities of both parties concerning workers' compensation claims. The employer pays premiums to the insurance company, which in turn provides coverage and indemnification for medical expenses and lost wages due to work-related injuries. Understanding this relationship helps clarify the role of insurance in safeguarding both employers and employees in the realm of workplace safety and health.

Other options, while relevant to workplace dynamics, do not accurately represent the specific contractual relationship involved in workers' compensation. The employer and employee relationship is inherent to workers' compensation but does not constitute the direct contractual arrangement. Meanwhile, the roles of labor unions and governmental entities may influence workers' rights and protections but do not form the contractual basis for workers' compensation policies.