What is Workers Compensation primarily designed to cover?

• A. Liability claims against employers
• B. Medical costs and lost wages due to work-related injuries
• C. Life insurance for employees
• D. Property damage incurred at work

Answer: (B)

Workers Compensation is primarily designed to cover medical costs and lost wages for employees who suffer work-related injuries or illnesses. This system provides financial support for employees who are injured on the job, ensuring they receive necessary medical treatment without incurring out-of-pocket expenses. Additionally, it compensates for lost wages during the time an employee cannot work due to a work-related injury, thereby offering a safety net that helps maintain their financial stability while they recover.

The focus of Workers Compensation on medical costs and wage replacement is central to its purpose, creating a structured way for employees to receive benefits without needing to prove fault. This is beneficial for both employees and employers, fostering a more supportive workplace environment while also limiting the financial liability for businesses.