Without the government playing default insurer, it's difficult for market insurance to cover extreme cases and externalities. Consider cases such as all employees develop cancer after 10 years, employees working years reduced by 20 years due to wrist/back/eye injuries, or .5% of employees die onsite.
For insurance carried by or provided the employer, any event that happens after employment ends is an externality and not covered. Extreme cases involving death will be underpriced as the employee won't have use for the money if they're dead.
In my own finances I carry a life insurance policy less than 1/10th of my nominal future earnings.