What insurance coverage is designed specifically for bodily injury or damage caused to employees during work?

• A. General Liability Insurance
• B. Employer Liability Insurance
• C. Commercial Liability Insurance
• D. Workers' Compensation Insurance

Answer: (D)

Workers' Compensation Insurance is specifically designed to provide coverage for bodily injury or damage sustained by employees while performing their job duties. This type of insurance is mandated by law in most states, including South Carolina, to ensure that employees who suffer work-related injuries receive timely medical treatment and wage replacement benefits, regardless of fault.

The key features of Workers' Compensation Insurance include coverage for medical expenses, rehabilitation costs, and compensation for lost wages due to the inability to work as a result of a workplace injury. Additionally, this insurance protects employers from lawsuits by employees injured on the job, as workers typically forfeit their right to sue in exchange for guaranteed benefits through the Workers' Compensation system.

In contrast, other types of insurance listed, such as General Liability Insurance or Employer Liability Insurance, cover different aspects of risk. General Liability focuses on claims from third parties for bodily injury and property damage arising from business operations, while Employer Liability Insurance may offer protection for employer legal liabilities associated with employee injuries. However, neither specifically addresses the automatic benefits and protections afforded to injured workers like Workers' Compensation does.