A Workmen's Compensation (WC) policy is a legal requirement in India under the Employees' Compensation Act, 1923, designed to protect employers from financial liabilities arising from workplace injuries, disability, or death of employees. This insurance covers statutory compensation, medical expenses, and hospitalization costs. Beyond legal compliance, it enhances workforce confidence and is often a prerequisite for securing contracts, making it a crucial risk management tool for businesses with on-ground teams.