Which of the following is TRUE about workers' compensation insurance?

Which of the following is TRUE about workers' compensation insurance?

• A. It only benefits the employee.
• B. It benefits both the employee and the employer.
• C. It is mandatory for all employers without exception.
• D. It does not cover workplace injuries.

Answer: (B)

Workers' compensation insurance is designed to provide benefits to both employees and employers, making it a crucial aspect of workplace safety and financial protection. For employees, this insurance covers medical expenses, rehabilitation costs, and a portion of lost wages due to work-related injuries or illnesses. It enables workers to receive necessary care without the stress of legal battles, thereby facilitating a quicker recovery process. From the employer's perspective, workers' compensation insurance protects them from lawsuits related to workplace injuries. By accepting the benefits of the program, employees typically forgo the right to sue their employers for negligence, thus limiting the financial liability that employers might face as a result of work-related incidents. This symbiotic relationship ensures that while employees receive necessary support during recovery, employers are also safeguarded against potential financial turmoil stemming from legal claims. Consequently, workers’ compensation serves as a critical mechanism for maintaining workplace safety and protecting the interests of both parties involved.

Workers' compensation insurance is designed to provide benefits to both employees and employers, making it a crucial aspect of workplace safety and financial protection. For employees, this insurance covers medical expenses, rehabilitation costs, and a portion of lost wages due to work-related injuries or illnesses. It enables workers to receive necessary care without the stress of legal battles, thereby facilitating a quicker recovery process.

From the employer's perspective, workers' compensation insurance protects them from lawsuits related to workplace injuries. By accepting the benefits of the program, employees typically forgo the right to sue their employers for negligence, thus limiting the financial liability that employers might face as a result of work-related incidents.

This symbiotic relationship ensures that while employees receive necessary support during recovery, employers are also safeguarded against potential financial turmoil stemming from legal claims. Consequently, workers’ compensation serves as a critical mechanism for maintaining workplace safety and protecting the interests of both parties involved.