What is Worker's Compensation?

What is Worker's Compensation?

• A. Insurance that provides cash benefits and/or medical care for workers injured on the job.
• B. Insurance that covers auto accidents
• C. Life insurance
• D. Health savings account

Answer: (A)

Worker's compensation is a form of insurance that provides cash benefits and medical care for workers injured on the job. It’s designed to help employees recover after a work-related accident or illness by covering medical treatment and a portion of lost wages, often with a quicker, simpler process than filing a lawsuit. It’s usually funded by employers or state programs. The other options don’t fit because they refer to different kinds of coverage: auto insurance covers vehicle-related incidents, life insurance pays out after death (or sometimes disability, but not for daily work injuries and medical care), and a health savings account is a tax-advantaged savings tool for medical expenses rather than insurance benefits for on-the-job injuries.

Worker's compensation is a form of insurance that provides cash benefits and medical care for workers injured on the job. It’s designed to help employees recover after a work-related accident or illness by covering medical treatment and a portion of lost wages, often with a quicker, simpler process than filing a lawsuit. It’s usually funded by employers or state programs.

The other options don’t fit because they refer to different kinds of coverage: auto insurance covers vehicle-related incidents, life insurance pays out after death (or sometimes disability, but not for daily work injuries and medical care), and a health savings account is a tax-advantaged savings tool for medical expenses rather than insurance benefits for on-the-job injuries.