Which of the following is NOT a function of Workers Compensation insurance?

• A. Covering medical costs for work-related injuries
• B. Providing payments for lost wages due to disability
• C. Offering liability coverage for employers against lawsuits
• D. Covering rehabilitation expenses after an injury

Answer: (C)

Workers' Compensation insurance is specifically designed to provide benefits to employees who suffer job-related injuries or illnesses. The primary functions of this insurance include covering medical costs associated with work-related injuries, providing wage replacement for employees who are unable to work due to disability, and covering rehabilitation expenses to aid recovery and return to work.

While Workers' Compensation does shield employers from potential lawsuits related to those injuries (as employees generally cannot sue their employers for work-related injuries), it does not provide liability coverage in the way general liability insurance does. The assumption behind Workers' Compensation is that, in exchange for guaranteed medical and wage benefits, employees relinquish their right to sue their employers for negligence. Therefore, the specific liability coverage for lawsuits is not a function of Workers' Compensation insurance; it is typically covered under separate liability policies.

This understanding clarifies that the correct answer identifies a function that does not fall under the purview of Workers' Compensation insurance, allowing for a clear distinction between the roles of workers' comp and other types of liability insurance.