Who typically purchases Workers Compensation insurance?

• A. Employees
• B. Government agencies
• C. Insurance companies
• D. Employers

Answer: (D)

Workers' Compensation insurance is typically purchased by employers to protect both their employees and themselves in the event of work-related injuries or illnesses. This insurance is a crucial aspect of maintaining workplace safety and ensuring that employees can receive the necessary medical care and compensation for lost wages due to job-related injuries.

By obtaining this coverage, employers can limit their liability and comply with state laws that often require them to provide Workers' Compensation insurance. It serves not only as a financial safety net for injured workers but also helps employers mitigate the risk of lawsuits related to workplace injuries. Though employees benefit from the coverage, they are generally not responsible for purchasing it, nor are government agencies or insurance companies the primary purchasers. This clarity highlights the employer's role as the key purchaser in the context of Workers' Compensation insurance.