Which of the following correctly describes a characteristic of Workers Compensation insurance?

• A. It is optional for employers to purchase
• B. It covers all accidents regardless of job-relatedness
• C. It is a mandatory insurance for employers in most states
• D. It only covers work-related injuries sustained during business hours

Answer: (C)

Workers Compensation insurance is designed to provide financial benefits to employees who are injured or become ill as a result of their job. One of its primary characteristics is that it is mandatory for employers in most states, which underscores its importance in protecting both workers and employers from the financial consequences of workplace injuries and illnesses.

This mandatory nature ensures that employees have access to benefits such as medical care, rehabilitation, and lost wages without needing to prove that the employer was at fault for the injury. By requiring employers to carry this insurance, states aim to create a safety net for workers, ensuring they are supported in case of an incident.

The other options do not accurately reflect the key aspects of Workers Compensation insurance. For instance, it is not optional for employers in most states; it specifically covers job-related injuries—not all accidents, regardless of their connection to work; and while it primarily addresses work-related injuries, it is not limited to business hours as long as the injuries occur in the course of employment duties. The collective intent of these attributes helps illustrate why Workers Compensation is a critical component of workplace safety and employee protection.