Worker's compensation insurance is a form of financial protection for workers who suffer work-related injuries or illnesses. This insurance is compulsory in many countries, including Portugal, and is designed to help ensure that workers are protected in the event of an accident at work.

Worker's compensation insurance may cover costs associated with medical treatment, hospitalisation, rehabilitation and permanent or temporary disability resulting from a work-related accident. In addition, workmen's compensation insurance may cover costs associated with compensation for death or permanent total or partial disability.