Which legal framework mandates employers to carry workers' compensation insurance?

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Employers must carry workers’ compensation insurance because this is a legal requirement that protects employees who are injured on the job. The authority that creates and enforces this obligation comes from statutory law, which sets the rules, duties, and benefits of coverage. While state laws typically administer workers’ comp programs, the overarching framework that imposes the duty is law rather than an optional policy or local rule. Local ordinances are limited to specific areas and don’t establish a universal mandate for all employers, and a university policy cannot bind all employers outside that institution. Saying it’s optional would ignore the legal protections workers are entitled to, so the best answer is that federal law provides the framework for this mandatory coverage.