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The minimum coverage required for Workers' Compensation is defined by statutory amounts, which means it is mandated by law. Statutory amounts are established to provide a baseline level of protection for workers in case of work-related injuries or illnesses. This legal requirement ensures that employees have access to benefits that include medical treatment, rehabilitation, and compensation for lost wages due to work-related incidents.

Employers are obligated to comply with these statutory requirements, ensuring that their Workers' Compensation policies meet or exceed the minimum coverage thresholds set by the state. This helps to protect both workers and employers, as it holds businesses accountable for providing necessary protections while also maintaining a level playing field within the industry.

Other options, such as employer-defined limits or minimum thresholds set by contractors, could lead to inconsistencies in coverage, potentially leaving workers unprotected. Therefore, adhering to statutory amounts is crucial for compliance and the wellbeing of workers.